Answer:
$1,143,000
Explanation:
materials per hammer = $9 x 0.5 pounds = $4.50
units sold during March = 500,000
units sold during April = 500,000 x 101% = 505,000
May's sales = 510,000
beginning inventory of finished goods in April = 190,000
beginning inventory of raw materials in April = 260,000
production schedule for April:
budgeted sales = 505,000
- beginning inventory = -190,000
+ desired ending inventory = 510,000 x 40% = 204,000
units to be produced during April = 519,000
materials required during April:
scheduled production = 519,000 hammers
raw materials required = 259,500 pounds
- beginning inventory = -260,000 pounds
+ desired ending inventory = 510,000 x 0.5 x 50% = 127,500 pounds
raw materials purchases 127,000 pounds
price per pound $9
raw materials expenditures during April = $1,143,000
