Question

TB MC Qu. 20-94 Masterson Companys budgeted... Masterson Company's budgeted production calls for 67,000 units in April and 63,000 units in May of a key raw material that costs $1.65 per unit. Each month's ending raw materials inventory should equal 20% of the following month's budgeted materials. The April 1 inventory for this material is 13,400 units. What is the budgeted materials purchases for April

Answer 1

Total Purchases(in $) 109,230

Step-by-step explanation:

The computation of the budgeted material purchase is shown below;

Budgeted Production (in units) 67,000

Add:-Desired Ending Inventory (20% of 63,000) (in units) 12,600

Total needed (in units) 79,600

Less:-Opening Inventory (in units) 13,400

Total Purchases (in units) 66,200

Price per unit(in $) 1.65

Total Purchases(in $) 109,230

Hence, the same would be relevant