Asked by Alyssa Cansler on Jul 02, 2024
A sporting goods manufacturer budgets production of 45,000 pairs of ski boots in the first quarter and 30,000 pairs in the second quarter of the upcoming year.Each pair of boots requires 2 kilograms (kg) of a key raw material.The company aims to end each quarter with ending raw materials inventory equal to 20% of the following quarter's material needs.Beginning inventory for this material is 18,000 kg and the cost per kg is $8.What is the budgeted materials needed in kg.in the first quarter?
A) 90,000 kg.
B) 84,000 kg.
C) 108,000 kg.
D) 102,000 kg.
E) 120,000 kg.
Key Raw Material
Essential materials required in the production of goods, critically influencing the manufacturing process.
Inventory Equal
A term indicating the state where the counted physical inventory matches the recorded inventory numbers in the books.
Ending Raw Materials
The inventory value of raw materials available at the end of an accounting period before being used in production.
- Calculate budgeted material needs and understand raw material inventory management.
Learning Objectives
- Calculate budgeted material needs and understand raw material inventory management.
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