FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Two pounds of raw materials are needed to produce one product. The desired ending balance of raw
materials is 10% of the of the next month's production needs. (Refer to your answer in the 2nd attached picture).
The beginning inventory of raw materials in April is 500 pounds and raw material cost per unit is P
0.50/per pound. The desired ending inventory of raw materials for June amounted to 500 points. Using
the table below, prepare a raw materials purchase budget for the month of April, May and June.
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