Asked by Aaron Morris on May 09, 2024
Verified
If 41,920 pounds of raw materials are required for production in September, then the budgeted cost of raw material purchases for August is closest to:
A) $57,056
B) $43,712
C) $44,480
D) $70,400
Budgeted Cost
An estimate of the financial cost for items, production, or projects planned in the future.
Raw Material Purchases
The total cost of all raw materials bought by a company for use in production over a specific period.
- Assess the expected cost for raw material procurement in relation to production targets and the expenses of these materials.
Verified Answer
JB
Joshua BosellMay 11, 2024
Final Answer :
B
Explanation :
The budgeted required production for August is computed as follows: 
*September sales of 10,400 units × 20% = 2,080 units
** August sales of 11,300 units × 20%= 2,260 units
The budgeted raw material purchases for August are computed as follows:
* 41,920 pounds × 30% = 12,576 pounds.
** 44,480 pounds × 30% = 13,344 pounds.
The budgeted cost of raw material purchases for August is computed as follows:
*September sales of 10,400 units × 20% = 2,080 units** August sales of 11,300 units × 20%= 2,260 units
The budgeted raw material purchases for August are computed as follows:
* 41,920 pounds × 30% = 12,576 pounds.** 44,480 pounds × 30% = 13,344 pounds.
The budgeted cost of raw material purchases for August is computed as follows:
Learning Objectives
- Assess the expected cost for raw material procurement in relation to production targets and the expenses of these materials.
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