Question

) Sill Corporation makes one product. Budgeted unit sales for January, February, March, and April are 9,900, 11,400, 11,900, and 13,400 units, respectively. The ending finished goods inventory equals 20% of the following month's sales. The ending raw materials inventory equals 40% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. If 61,000 pounds of raw materials are required for production in March, then the budgeted raw material purchases for February is closest to:

Answer 1

Answer:

                                                                Feb March          April

Sales units                                  11400 11900         13400

Add: ending inventory                        2380 2680  

Total                                 13780 14580  

Less: Beginning inventory                2280 2380  

Production units                        11500 12200  

Ram material req. per unit                       5 5  

Total Production needs                     57500 61000  

Add: ending inventory                        24400  

Total requirement                         81900  

Less: beginning inventory                23000  

Total Purchase in Feb                        58900  

Answer is 58900 pounds  

Explanation: