SlideShare a Scribd company logo
Accounting 202
PURCHASES BUDGET: FACTS:
David, Inc. is preparing its purchases budget for April. The following sales information has been
gathered:
April May
Unit sales 400 500
Raw materials inventory on 1 April: 450 pounds
April production: 430 units
Cost per pound: $ 5
Desired ending inventory each month: Raw materials: 25% of next month's production.
Number of pounds of raw material required per finished unit: 4 lb.
REQUIRED: a) How many pounds of raw materials should be purchased in April ?
b) What will be the cost of these purchases?
Solution
a) Purchase of Raw Material in April:
Production of May: Required 500, Ending Units = 30, Production Required 470 Units.
Material Required = 470 x 4 = 1,880 lb.
b) Cost of Purchase = 1,740 x 5 = $8,700
Units
April production 430
Raw Material Required (430 x 4) 1,720
Desired Level of Ending Inventory (1,880 x 25%) 470
Total Raw Material Required 2,190
- Opening Stock of Raw Material 450
Raw Material required to be Purchased in April 1,740

More Related Content

More from wviola

Action Center activation Administrative Tools Aero applets Computer Co (1).docx
Action Center activation Administrative Tools Aero applets Computer Co (1).docxAction Center activation Administrative Tools Aero applets Computer Co (1).docx
Action Center activation Administrative Tools Aero applets Computer Co (1).docx
wviola
 
Acid lonization Constants (K-) for Some Monoprotic Weak Acids at 25 ec.docx
Acid lonization Constants (K-) for Some Monoprotic Weak Acids at 25 ec.docxAcid lonization Constants (K-) for Some Monoprotic Weak Acids at 25 ec.docx
Acid lonization Constants (K-) for Some Monoprotic Weak Acids at 25 ec.docx
wviola
 
AC 556 Accounting for Governmental & Nonprofit Entities Chapter 6Solut.docx
AC 556 Accounting for Governmental & Nonprofit Entities Chapter 6Solut.docxAC 556 Accounting for Governmental & Nonprofit Entities Chapter 6Solut.docx
AC 556 Accounting for Governmental & Nonprofit Entities Chapter 6Solut.docx
wviola
 
Accounting Which of the following is true of a corporation- OA- The st.docx
Accounting Which of the following is true of a corporation- OA- The st.docxAccounting Which of the following is true of a corporation- OA- The st.docx
Accounting Which of the following is true of a corporation- OA- The st.docx
wviola
 
AC 556 Accounting for Governmental & Nonprofit Entities Chapter 7Solut.docx
AC 556 Accounting for Governmental & Nonprofit Entities Chapter 7Solut.docxAC 556 Accounting for Governmental & Nonprofit Entities Chapter 7Solut.docx
AC 556 Accounting for Governmental & Nonprofit Entities Chapter 7Solut.docx
wviola
 
advantages and disadvantages of using centralized network management v.docx
advantages and disadvantages of using centralized network management v.docxadvantages and disadvantages of using centralized network management v.docx
advantages and disadvantages of using centralized network management v.docx
wviola
 
Advantages & Disadvantages of Server Applications in 150+ wordsSolutio.docx
Advantages & Disadvantages of Server Applications in 150+ wordsSolutio.docxAdvantages & Disadvantages of Server Applications in 150+ wordsSolutio.docx
Advantages & Disadvantages of Server Applications in 150+ wordsSolutio.docx
wviola
 
Does any one have a paper on human resource practices in countries bes.docx
Does any one have a paper on human resource practices in countries bes.docxDoes any one have a paper on human resource practices in countries bes.docx
Does any one have a paper on human resource practices in countries bes.docx
wviola
 
Do you think Facebook should operate in China even if it means complyi.docx
Do you think Facebook should operate in China even if it means complyi.docxDo you think Facebook should operate in China even if it means complyi.docx
Do you think Facebook should operate in China even if it means complyi.docx
wviola
 
Do you think contingent gains should be disclosed in the financial sta (1).docx
Do you think contingent gains should be disclosed in the financial sta (1).docxDo you think contingent gains should be disclosed in the financial sta (1).docx
Do you think contingent gains should be disclosed in the financial sta (1).docx
wviola
 
Do you think contingent gains should be disclosed in the financial sta.docx
Do you think contingent gains should be disclosed in the financial sta.docxDo you think contingent gains should be disclosed in the financial sta.docx
Do you think contingent gains should be disclosed in the financial sta.docx
wviola
 
Do you believe the double taxation of earnings which occurs at the cor.docx
Do you believe the double taxation of earnings which occurs at the cor.docxDo you believe the double taxation of earnings which occurs at the cor.docx
Do you believe the double taxation of earnings which occurs at the cor.docx
wviola
 
Do you believe that the Patriot Act was an appropriate risk response t.docx
Do you believe that the Patriot Act was an appropriate risk response t.docxDo you believe that the Patriot Act was an appropriate risk response t.docx
Do you believe that the Patriot Act was an appropriate risk response t.docx
wviola
 
Do you believe that Bernard Madoff worked alone- or do you think he ha.docx
Do you believe that Bernard Madoff worked alone- or do you think he ha.docxDo you believe that Bernard Madoff worked alone- or do you think he ha.docx
Do you believe that Bernard Madoff worked alone- or do you think he ha.docx
wviola
 
Do you agree with Scott McNealy-'s statement that people have --zero p.docx
Do you agree with Scott McNealy-'s statement that people have --zero p.docxDo you agree with Scott McNealy-'s statement that people have --zero p.docx
Do you agree with Scott McNealy-'s statement that people have --zero p.docx
wviola
 
Do the six attributes of an ideal health system capture all the major.docx
Do the six attributes of an ideal health system capture all the major.docxDo the six attributes of an ideal health system capture all the major.docx
Do the six attributes of an ideal health system capture all the major.docx
wviola
 
Do research to identify the current countries that are identified as -.docx
Do research to identify the current countries that are identified as -.docxDo research to identify the current countries that are identified as -.docx
Do research to identify the current countries that are identified as -.docx
wviola
 
Do governments and companies in developed countries have an ethical re.docx
Do governments and companies in developed countries have an ethical re.docxDo governments and companies in developed countries have an ethical re.docx
Do governments and companies in developed countries have an ethical re.docx
wviola
 
Do a literature survey to identify the first paper on 3 topics of the.docx
Do a literature survey to identify the first paper on 3 topics of the.docxDo a literature survey to identify the first paper on 3 topics of the.docx
Do a literature survey to identify the first paper on 3 topics of the.docx
wviola
 
Divide and check- T2 - 13-t - 4Solution(t2 - 13)-(t - 4) Do division-.docx
Divide and check-  T2 - 13-t - 4Solution(t2 - 13)-(t - 4) Do division-.docxDivide and check-  T2 - 13-t - 4Solution(t2 - 13)-(t - 4) Do division-.docx
Divide and check- T2 - 13-t - 4Solution(t2 - 13)-(t - 4) Do division-.docx
wviola
 

More from wviola (20)

Action Center activation Administrative Tools Aero applets Computer Co (1).docx
Action Center activation Administrative Tools Aero applets Computer Co (1).docxAction Center activation Administrative Tools Aero applets Computer Co (1).docx
Action Center activation Administrative Tools Aero applets Computer Co (1).docx
 
Acid lonization Constants (K-) for Some Monoprotic Weak Acids at 25 ec.docx
Acid lonization Constants (K-) for Some Monoprotic Weak Acids at 25 ec.docxAcid lonization Constants (K-) for Some Monoprotic Weak Acids at 25 ec.docx
Acid lonization Constants (K-) for Some Monoprotic Weak Acids at 25 ec.docx
 
AC 556 Accounting for Governmental & Nonprofit Entities Chapter 6Solut.docx
AC 556 Accounting for Governmental & Nonprofit Entities Chapter 6Solut.docxAC 556 Accounting for Governmental & Nonprofit Entities Chapter 6Solut.docx
AC 556 Accounting for Governmental & Nonprofit Entities Chapter 6Solut.docx
 
Accounting Which of the following is true of a corporation- OA- The st.docx
Accounting Which of the following is true of a corporation- OA- The st.docxAccounting Which of the following is true of a corporation- OA- The st.docx
Accounting Which of the following is true of a corporation- OA- The st.docx
 
AC 556 Accounting for Governmental & Nonprofit Entities Chapter 7Solut.docx
AC 556 Accounting for Governmental & Nonprofit Entities Chapter 7Solut.docxAC 556 Accounting for Governmental & Nonprofit Entities Chapter 7Solut.docx
AC 556 Accounting for Governmental & Nonprofit Entities Chapter 7Solut.docx
 
advantages and disadvantages of using centralized network management v.docx
advantages and disadvantages of using centralized network management v.docxadvantages and disadvantages of using centralized network management v.docx
advantages and disadvantages of using centralized network management v.docx
 
Advantages & Disadvantages of Server Applications in 150+ wordsSolutio.docx
Advantages & Disadvantages of Server Applications in 150+ wordsSolutio.docxAdvantages & Disadvantages of Server Applications in 150+ wordsSolutio.docx
Advantages & Disadvantages of Server Applications in 150+ wordsSolutio.docx
 
Does any one have a paper on human resource practices in countries bes.docx
Does any one have a paper on human resource practices in countries bes.docxDoes any one have a paper on human resource practices in countries bes.docx
Does any one have a paper on human resource practices in countries bes.docx
 
Do you think Facebook should operate in China even if it means complyi.docx
Do you think Facebook should operate in China even if it means complyi.docxDo you think Facebook should operate in China even if it means complyi.docx
Do you think Facebook should operate in China even if it means complyi.docx
 
Do you think contingent gains should be disclosed in the financial sta (1).docx
Do you think contingent gains should be disclosed in the financial sta (1).docxDo you think contingent gains should be disclosed in the financial sta (1).docx
Do you think contingent gains should be disclosed in the financial sta (1).docx
 
Do you think contingent gains should be disclosed in the financial sta.docx
Do you think contingent gains should be disclosed in the financial sta.docxDo you think contingent gains should be disclosed in the financial sta.docx
Do you think contingent gains should be disclosed in the financial sta.docx
 
Do you believe the double taxation of earnings which occurs at the cor.docx
Do you believe the double taxation of earnings which occurs at the cor.docxDo you believe the double taxation of earnings which occurs at the cor.docx
Do you believe the double taxation of earnings which occurs at the cor.docx
 
Do you believe that the Patriot Act was an appropriate risk response t.docx
Do you believe that the Patriot Act was an appropriate risk response t.docxDo you believe that the Patriot Act was an appropriate risk response t.docx
Do you believe that the Patriot Act was an appropriate risk response t.docx
 
Do you believe that Bernard Madoff worked alone- or do you think he ha.docx
Do you believe that Bernard Madoff worked alone- or do you think he ha.docxDo you believe that Bernard Madoff worked alone- or do you think he ha.docx
Do you believe that Bernard Madoff worked alone- or do you think he ha.docx
 
Do you agree with Scott McNealy-'s statement that people have --zero p.docx
Do you agree with Scott McNealy-'s statement that people have --zero p.docxDo you agree with Scott McNealy-'s statement that people have --zero p.docx
Do you agree with Scott McNealy-'s statement that people have --zero p.docx
 
Do the six attributes of an ideal health system capture all the major.docx
Do the six attributes of an ideal health system capture all the major.docxDo the six attributes of an ideal health system capture all the major.docx
Do the six attributes of an ideal health system capture all the major.docx
 
Do research to identify the current countries that are identified as -.docx
Do research to identify the current countries that are identified as -.docxDo research to identify the current countries that are identified as -.docx
Do research to identify the current countries that are identified as -.docx
 
Do governments and companies in developed countries have an ethical re.docx
Do governments and companies in developed countries have an ethical re.docxDo governments and companies in developed countries have an ethical re.docx
Do governments and companies in developed countries have an ethical re.docx
 
Do a literature survey to identify the first paper on 3 topics of the.docx
Do a literature survey to identify the first paper on 3 topics of the.docxDo a literature survey to identify the first paper on 3 topics of the.docx
Do a literature survey to identify the first paper on 3 topics of the.docx
 
Divide and check- T2 - 13-t - 4Solution(t2 - 13)-(t - 4) Do division-.docx
Divide and check-  T2 - 13-t - 4Solution(t2 - 13)-(t - 4) Do division-.docxDivide and check-  T2 - 13-t - 4Solution(t2 - 13)-(t - 4) Do division-.docx
Divide and check- T2 - 13-t - 4Solution(t2 - 13)-(t - 4) Do division-.docx
 

Recently uploaded

Phrasal Verbs.XXXXXXXXXXXXXXXXXXXXXXXXXX
Phrasal Verbs.XXXXXXXXXXXXXXXXXXXXXXXXXXPhrasal Verbs.XXXXXXXXXXXXXXXXXXXXXXXXXX
Phrasal Verbs.XXXXXXXXXXXXXXXXXXXXXXXXXX
MIRIAMSALINAS13
 
1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx
JosvitaDsouza2
 
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdf
Welcome to TechSoup   New Member Orientation and Q&A (May 2024).pdfWelcome to TechSoup   New Member Orientation and Q&A (May 2024).pdf
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdf
TechSoup
 
GIÁO ÁN DẠY THÊM (KẾ HOẠCH BÀI BUỔI 2) - TIẾNG ANH 8 GLOBAL SUCCESS (2 CỘT) N...
GIÁO ÁN DẠY THÊM (KẾ HOẠCH BÀI BUỔI 2) - TIẾNG ANH 8 GLOBAL SUCCESS (2 CỘT) N...GIÁO ÁN DẠY THÊM (KẾ HOẠCH BÀI BUỔI 2) - TIẾNG ANH 8 GLOBAL SUCCESS (2 CỘT) N...
GIÁO ÁN DẠY THÊM (KẾ HOẠCH BÀI BUỔI 2) - TIẾNG ANH 8 GLOBAL SUCCESS (2 CỘT) N...
Nguyen Thanh Tu Collection
 
Palestine last event orientationfvgnh .pptx
Palestine last event orientationfvgnh .pptxPalestine last event orientationfvgnh .pptx
Palestine last event orientationfvgnh .pptx
RaedMohamed3
 
MARUTI SUZUKI- A Successful Joint Venture in India.pptx
MARUTI SUZUKI- A Successful Joint Venture in India.pptxMARUTI SUZUKI- A Successful Joint Venture in India.pptx
MARUTI SUZUKI- A Successful Joint Venture in India.pptx
bennyroshan06
 
How to Break the cycle of negative Thoughts
How to Break the cycle of negative ThoughtsHow to Break the cycle of negative Thoughts
How to Break the cycle of negative Thoughts
Col Mukteshwar Prasad
 
The Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official PublicationThe Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official Publication
Delapenabediema
 
Supporting (UKRI) OA monographs at Salford.pptx
Supporting (UKRI) OA monographs at Salford.pptxSupporting (UKRI) OA monographs at Salford.pptx
Supporting (UKRI) OA monographs at Salford.pptx
Jisc
 
Basic_QTL_Marker-assisted_Selection_Sourabh.ppt
Basic_QTL_Marker-assisted_Selection_Sourabh.pptBasic_QTL_Marker-assisted_Selection_Sourabh.ppt
Basic_QTL_Marker-assisted_Selection_Sourabh.ppt
Sourabh Kumar
 
Overview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with MechanismOverview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with Mechanism
DeeptiGupta154
 
The Art Pastor's Guide to Sabbath | Steve Thomason
The Art Pastor's Guide to Sabbath | Steve ThomasonThe Art Pastor's Guide to Sabbath | Steve Thomason
The Art Pastor's Guide to Sabbath | Steve Thomason
Steve Thomason
 
The approach at University of Liverpool.pptx
The approach at University of Liverpool.pptxThe approach at University of Liverpool.pptx
The approach at University of Liverpool.pptx
Jisc
 
B.ed spl. HI pdusu exam paper-2023-24.pdf
B.ed spl. HI pdusu exam paper-2023-24.pdfB.ed spl. HI pdusu exam paper-2023-24.pdf
B.ed spl. HI pdusu exam paper-2023-24.pdf
Special education needs
 
How to Split Bills in the Odoo 17 POS Module
How to Split Bills in the Odoo 17 POS ModuleHow to Split Bills in the Odoo 17 POS Module
How to Split Bills in the Odoo 17 POS Module
Celine George
 
Home assignment II on Spectroscopy 2024 Answers.pdf
Home assignment II on Spectroscopy 2024 Answers.pdfHome assignment II on Spectroscopy 2024 Answers.pdf
Home assignment II on Spectroscopy 2024 Answers.pdf
Tamralipta Mahavidyalaya
 
Unit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdfUnit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdf
Thiyagu K
 
Jose-Rizal-and-Philippine-Nationalism-National-Symbol-2.pptx
Jose-Rizal-and-Philippine-Nationalism-National-Symbol-2.pptxJose-Rizal-and-Philippine-Nationalism-National-Symbol-2.pptx
Jose-Rizal-and-Philippine-Nationalism-National-Symbol-2.pptx
ricssacare
 
Basic Civil Engineering Notes of Chapter-6, Topic- Ecosystem, Biodiversity G...
Basic Civil Engineering Notes of Chapter-6,  Topic- Ecosystem, Biodiversity G...Basic Civil Engineering Notes of Chapter-6,  Topic- Ecosystem, Biodiversity G...
Basic Civil Engineering Notes of Chapter-6, Topic- Ecosystem, Biodiversity G...
Denish Jangid
 
special B.ed 2nd year old paper_20240531.pdf
special B.ed 2nd year old paper_20240531.pdfspecial B.ed 2nd year old paper_20240531.pdf
special B.ed 2nd year old paper_20240531.pdf
Special education needs
 

Recently uploaded (20)

Phrasal Verbs.XXXXXXXXXXXXXXXXXXXXXXXXXX
Phrasal Verbs.XXXXXXXXXXXXXXXXXXXXXXXXXXPhrasal Verbs.XXXXXXXXXXXXXXXXXXXXXXXXXX
Phrasal Verbs.XXXXXXXXXXXXXXXXXXXXXXXXXX
 
1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx
 
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdf
Welcome to TechSoup   New Member Orientation and Q&A (May 2024).pdfWelcome to TechSoup   New Member Orientation and Q&A (May 2024).pdf
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdf
 
GIÁO ÁN DẠY THÊM (KẾ HOẠCH BÀI BUỔI 2) - TIẾNG ANH 8 GLOBAL SUCCESS (2 CỘT) N...
GIÁO ÁN DẠY THÊM (KẾ HOẠCH BÀI BUỔI 2) - TIẾNG ANH 8 GLOBAL SUCCESS (2 CỘT) N...GIÁO ÁN DẠY THÊM (KẾ HOẠCH BÀI BUỔI 2) - TIẾNG ANH 8 GLOBAL SUCCESS (2 CỘT) N...
GIÁO ÁN DẠY THÊM (KẾ HOẠCH BÀI BUỔI 2) - TIẾNG ANH 8 GLOBAL SUCCESS (2 CỘT) N...
 
Palestine last event orientationfvgnh .pptx
Palestine last event orientationfvgnh .pptxPalestine last event orientationfvgnh .pptx
Palestine last event orientationfvgnh .pptx
 
MARUTI SUZUKI- A Successful Joint Venture in India.pptx
MARUTI SUZUKI- A Successful Joint Venture in India.pptxMARUTI SUZUKI- A Successful Joint Venture in India.pptx
MARUTI SUZUKI- A Successful Joint Venture in India.pptx
 
How to Break the cycle of negative Thoughts
How to Break the cycle of negative ThoughtsHow to Break the cycle of negative Thoughts
How to Break the cycle of negative Thoughts
 
The Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official PublicationThe Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official Publication
 
Supporting (UKRI) OA monographs at Salford.pptx
Supporting (UKRI) OA monographs at Salford.pptxSupporting (UKRI) OA monographs at Salford.pptx
Supporting (UKRI) OA monographs at Salford.pptx
 
Basic_QTL_Marker-assisted_Selection_Sourabh.ppt
Basic_QTL_Marker-assisted_Selection_Sourabh.pptBasic_QTL_Marker-assisted_Selection_Sourabh.ppt
Basic_QTL_Marker-assisted_Selection_Sourabh.ppt
 
Overview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with MechanismOverview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with Mechanism
 
The Art Pastor's Guide to Sabbath | Steve Thomason
The Art Pastor's Guide to Sabbath | Steve ThomasonThe Art Pastor's Guide to Sabbath | Steve Thomason
The Art Pastor's Guide to Sabbath | Steve Thomason
 
The approach at University of Liverpool.pptx
The approach at University of Liverpool.pptxThe approach at University of Liverpool.pptx
The approach at University of Liverpool.pptx
 
B.ed spl. HI pdusu exam paper-2023-24.pdf
B.ed spl. HI pdusu exam paper-2023-24.pdfB.ed spl. HI pdusu exam paper-2023-24.pdf
B.ed spl. HI pdusu exam paper-2023-24.pdf
 
How to Split Bills in the Odoo 17 POS Module
How to Split Bills in the Odoo 17 POS ModuleHow to Split Bills in the Odoo 17 POS Module
How to Split Bills in the Odoo 17 POS Module
 
Home assignment II on Spectroscopy 2024 Answers.pdf
Home assignment II on Spectroscopy 2024 Answers.pdfHome assignment II on Spectroscopy 2024 Answers.pdf
Home assignment II on Spectroscopy 2024 Answers.pdf
 
Unit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdfUnit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdf
 
Jose-Rizal-and-Philippine-Nationalism-National-Symbol-2.pptx
Jose-Rizal-and-Philippine-Nationalism-National-Symbol-2.pptxJose-Rizal-and-Philippine-Nationalism-National-Symbol-2.pptx
Jose-Rizal-and-Philippine-Nationalism-National-Symbol-2.pptx
 
Basic Civil Engineering Notes of Chapter-6, Topic- Ecosystem, Biodiversity G...
Basic Civil Engineering Notes of Chapter-6,  Topic- Ecosystem, Biodiversity G...Basic Civil Engineering Notes of Chapter-6,  Topic- Ecosystem, Biodiversity G...
Basic Civil Engineering Notes of Chapter-6, Topic- Ecosystem, Biodiversity G...
 
special B.ed 2nd year old paper_20240531.pdf
special B.ed 2nd year old paper_20240531.pdfspecial B.ed 2nd year old paper_20240531.pdf
special B.ed 2nd year old paper_20240531.pdf
 

Accounting 202 PURCHASES BUDGET- FACTS- David- Inc- is preparing its p.docx

  • 1. Accounting 202 PURCHASES BUDGET: FACTS: David, Inc. is preparing its purchases budget for April. The following sales information has been gathered: April May Unit sales 400 500 Raw materials inventory on 1 April: 450 pounds April production: 430 units Cost per pound: $ 5 Desired ending inventory each month: Raw materials: 25% of next month's production. Number of pounds of raw material required per finished unit: 4 lb. REQUIRED: a) How many pounds of raw materials should be purchased in April ? b) What will be the cost of these purchases? Solution a) Purchase of Raw Material in April: Production of May: Required 500, Ending Units = 30, Production Required 470 Units. Material Required = 470 x 4 = 1,880 lb. b) Cost of Purchase = 1,740 x 5 = $8,700
  • 2. Units April production 430 Raw Material Required (430 x 4) 1,720 Desired Level of Ending Inventory (1,880 x 25%) 470 Total Raw Material Required 2,190 - Opening Stock of Raw Material 450 Raw Material required to be Purchased in April 1,740