Answer:
The budgeted materials need in kg. in the first quarter is 90,000 kg
Explanation:
For computing the budgeted material needed in the first quarter, first we have to calculate the consumption of first and second quarters separately, so that we can arrive to a solution.
The consumption of first quarter = Budgeted production × required kg
= 45,000 × 2
= 90,000 kg
The consumption of second quarter = Budgeted production × required kg
= 30,000 × 2
= 60,000 kg
The ending raw material inventory = 30% of second quarter
= 30% × 60,000
= 18,000 kg
Now put the formula to find out the purchase amount. The formula is shown below:
Raw material consumption = Opening raw material inventory + purchase of raw material - ending raw material inventory
where,
beginning inventory = 18,000 kg
90,000 = 18,000 + purchase - 18,000
So, the purchase is 90,000 kg
The question has asked the amount in kg so cost per kg is irrelevant.
Hence, the budgeted materials need in kg. in the first quarter is 90,000 kg
