Skateboard Inc. makes plastic skateboards. Budgeted sales and production data for the skateboards are as follows: Month 1 budgeted unit sales Month 2 budgeted unit sales Month 3 budgeted unit sales Month 1 budgeted unit production. Month 2 budgeted unit production Month 3 budgeted unit production Raw material required for each finished unit (in pounds) 2,000 2,600 3,100 2,400 3,500 3,900 Each skateboard requires one pound of plastic in its manufacture, Skateboard Inc. has a policy that the inventory of plastic at the the production needs for the following month. At the beginning of Month 1, 720 pounds of plastic were in inventory. How many pe purchase in Month 2?
Skateboard Inc. makes plastic skateboards. Budgeted sales and production data for the skateboards are as follows: Month 1 budgeted unit sales Month 2 budgeted unit sales Month 3 budgeted unit sales Month 1 budgeted unit production. Month 2 budgeted unit production Month 3 budgeted unit production Raw material required for each finished unit (in pounds) 2,000 2,600 3,100 2,400 3,500 3,900 Each skateboard requires one pound of plastic in its manufacture, Skateboard Inc. has a policy that the inventory of plastic at the the production needs for the following month. At the beginning of Month 1, 720 pounds of plastic were in inventory. How many pe purchase in Month 2?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Skateboard Inc. makes plastic skateboards. Budgeted sales and production data for the skateboards are as follows:
Month 1 budgeted unit sales
Month 2 budgeted unit sales
Month 3 budgeted unit sales
Month 1 budgeted unit production
Month 2 budgeted unit production
Month 3 budgeted unit production
Raw material required for each finished unit (in pounds)
2,000
2,600
3,100
2,400
3,500
3,900
Each skateboard requires one pound of plastic in its manufacture, Skateboard Inc. has a policy that the inventory of plastic at the
the production needs for the following month. At the beginning of Month 1, 720 pounds of plastic were in inventory. How many pa
purchase in Month 2?
Transcribed Image Text:Raw material required for each finished unit (in pounds)
Each skateboard requires one pound of plastic in its manufacture. Skateboard Inc. has a policy that the inventory of plastic at the end of each month needs to be equal to 30% of
the production needs for the following month. At the beginning of Month 1, 720 pounds of plastic were in inventory. How many pounds of plastic would Skateboard Inc. need to
purchase in Month 2?
ⒸA. 2,730
OB. 2,520
OC. 3,620
OD. 4,020
A
CMP
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