If 60,500 pounds of raw materials are required for production in December, then the budgeted cost of raw material purchases for November is closest to:

A) $91,880
B) $139,520
C) $79,400
D) $115,700

Question

If 60,500 pounds of raw materials are required for production in December, then the budgeted cost of raw material purchases for November is closest to:A) $91,880B) $139,520C) $79,400D) $115,700

Abhishek Pattnaik · Accepted Answer

Final Answer : A, Explanation :  The budgeted required production for November is computed as follows:   *December sales of 11,300 units × 20% = 2,260 units** November sales of 7,100 units × 20%= 1,420 unitsThe budgeted raw material purchases for November are computed as follows:   * 60,500 pounds × 30% = 18,150 pounds.** 39,700 pounds × 30% = 11,910 pounds.The budgeted cost of raw material purchases for November is computed as follows:

If 60,500 pounds of raw materials are required for production in December, then the budgeted cost of raw material purchases for November is closest to:

A) $91,880
B) $139,520
C) $79,400
D) $115,700

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