Assume the sales budget for April and May is 39,000 units and 41,000 units, respectively. The production budget for the same two months is 36,000 units and 37,000 units, respectively. Each unit of finished goods required 5 pounds of raw materials. The company always maintains raw materials inventory equal to 10% of the following month's production needs. How many pounds of raw material need to be purchased in April? Multiple Choice 184,400 182,500 180,300 180,500
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Assume the sales budget for April and May is 39,000 units and 41,000 units, respectively. The production budget for the same two months is 36,000 units and 37,000 units, respectively. Each unit of finished goods required 5 pounds of raw materials. The company always maintains raw materials inventory equal to 10% of the following month's production needs. How many pounds of raw material need to be purchased in April?
Multiple Choice
184,400
182,500
180,300
180,500
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