Question

BUS313 CH 8, 10, 11 Each unit produced by Terra Electronics requires 4 pounds of raw materials. The raw m inventory must be equal to 10% of the next month's production. Each pound of raw me! $2.00. Budgeted production information follows. n. Each pound of raw materials costs April 28,000 units May 30,000 units June 25,000 units How much are budgeted purchases of raw materials for May? A) $221,000 B) $118,000 C) $236,000 D) None of the answer choices are correct. 9. Which of the following is the correct order for the preparation of the listed budgets? A) Direct labor budget, sales budget, budgeted income statement B) Sales budget, production budget, direct material purchases budget C) Cash budget, capital acquisitions budget, direct labor budget D) Budgeted income statement, sales budget, cash budget -0. Ideal standards are developed under the assumption that no obstacles to the production process will be encountered. A) True B) False

Answer 1

rate positively ..

ans 1		April	May	June
i	Production	28000	30000	25000
ii	Raw material reqiured for production	112000	120000	100000
iii	Ending inventory	12000	10000
iv	Beginning inventory for May		12000
v=iii+iii-iv	Raw material to purchase		118000
vi	Rate =		2
viii-v*vi	Purchase price =		236000
	ans = option C)		236000
Ans 2
	Correct answer is option :
	B) sales budget, production budget, direct material purchase budget
Ans 3	Statement is TRUE