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Business, 01.09.2020 22:01 summerjoiner
On September 30 of Year 1, JayBob Company had raw materials inventory of 5,000 pounds. Starting in October, JayBob intends to have an inventory policy of maintaining ending raw materials inventory at the end of every month equal to the next TWO months’ production needs. For example, ending inventory at the end of October should be equal to forecasted raw materials needs for November production plus forecasted raw materials needs for December production. Five pounds of raw materials are needed in the production of one finished unit. Forecasted PRODUCTION for the months October, Year 1 through December, Year 1 is as follows. October 4,500 unitsNovember 6,000 units December 2,000 unitsWhat is the amount of budgeted RAW MATERIALS PURCHASES for October?A- 40,000 poundsB- 52,500 poundsC- 57,500 poundsD- 62,500 poundsE- 67,500 pounds
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On September 30 of Year 1, JayBob Company had raw materials inventory of 5,000 pounds. Starting in O...
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