Asked by Logan Jordan on May 27, 2024
Verified
If 54,480 pounds of raw materials are required for production in June, then the budgeted cost of raw material purchases for May is closest to:
A) $148,752
B) $89,280
C) $121,968
D) $95,184
Budgeted Cost
Budgeted cost refers to the estimated financial expense allocated for a specific purpose or project within a certain period.
Raw Material Purchases
The acquisition of unprocessed materials that are required in the production or manufacturing of goods.
- Compute the anticipated expenditure for acquiring raw materials, considering the needs of production and the expenses associated with these materials.
Verified Answer
BM
Blake MorrisMay 29, 2024
Final Answer :
D
Explanation :
The budgeted required production for May is computed as follows: 
*June sales of 13,800 units × 20% = 2,760 units
** May sales of 10,500 units × 20%= 2,100 units
The budgeted raw material purchases for May are computed as follows:
* 54,480 pounds × 30% = 16,344 pounds.
** 44,640 pounds × 30% = 13,392 pounds.
The budgeted cost of raw material purchases for May is computed as follows:
*June sales of 13,800 units × 20% = 2,760 units** May sales of 10,500 units × 20%= 2,100 units
The budgeted raw material purchases for May are computed as follows:
* 54,480 pounds × 30% = 16,344 pounds.** 44,640 pounds × 30% = 13,392 pounds.
The budgeted cost of raw material purchases for May is computed as follows:
Learning Objectives
- Compute the anticipated expenditure for acquiring raw materials, considering the needs of production and the expenses associated with these materials.
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