Answer:
Raw material purchase budget for June 64,650 pounds
Explanation:
<em>Production budget for June = Sales budget + closing inventory- + Opening inventory </em>
<em>Closing inventory of products for June</em>
-30%× July budgeted sales= 30% ×19,600
=5,880
July production production budget
t= 19600 + (30%× 17,600)- 5,880
=19600 + 5280 - 5880 =19,000 units
<em>July usage budget for raw material</em>
<em>Usage budget = production budget × standard material per unit</em>
= 19,000× 3 pounds =57,000 pounds
<em>Production budget for June</em> = 15600 + 5,880 -4,680
= 16,800 units
Material usage budget = 16,800×3 pounds = 50400 pounds
<em>Material purchase = Usage budget + closing inventory of material - opening invento</em>ry
= 50,400 + (25%× 57000) - 0 =
=50,400 + 14250 =64,650 pounds
