Homework Answers
Answer
--Raw material to be purchased = 2,270,000 grams OR 2,270 kilograms (kgs)
| Budgeted finished goods sale unit | 710,000 | units | |
| Budgeted finished goods ending inventory | 74,000 | units | |
| Budgeted finished goods beginning invetory | (24,000) | units | |
| A | Budgeted finished goods production | 760,000 | units |
| B | Raw material per unit | 3 | grams |
| C= A x B | Total requirement of raw material | 2,280,000 | grams |
| Ending Inventory of raw material | 44,000 | grams | |
| Beginning Inventory of raw material | (54,000) | grams | |
| [2280000 + 44000 - 54000] | Raw material to be purchased | 2,270,000 | grams |
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process of preparing its annual budget. The following beginning and
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material (grams) 57,000 47,000 Each unit of finished goods requires
3 grams of raw material. The company plans to sell 340,000 units
during the year. How much of the raw material should the company
purchase during the year?
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