A companys direct materials budget shows the following cost of materials to be purchased for...
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Accounting
A companys direct materials budget shows the following cost of materials to be purchased for the coming three months:
January
February
March
Material purchases
$ 14,750
16,145
15,670
Payments for purchases are expected to be made 40% in the month of purchase and 60% in the month following purchase. The December Accounts Payable balance (which relates only to material purchases) is $ 7,435. The budgeted cash payments for materials in February are:
Multiple Choice
$ 13,335.
$ 11,790.
$ 15,308.
$ 11,093.
$ 15,955.
A companys budgeted production calls for 65,000 pounds in April and 73,000 pounds in May of a key raw material that costs $1.80 per pound. Each month's ending raw materials inventory should equal 25% of the following month's budgeted materials. The April 1 inventory for this material is 18,500 pounds. What are the budgeted materials need in pounds for April?
Multiple Choice
70,750 pounds.
64,750 pounds.
69,000 pounds.
84,650 pounds.
101,250 pounds.
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