Cost accounting using budgeted data
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Following are budgeted data
Jan Feb March
sales in units 15000 20000 18000
production units 18000 19000 16000
One pound of material is required for each finished unit. The inventory of materials at end of each month should equal 20% of the following months production needs. Purchases of raw materials for February should be
A 19600
B 20400
C 18400
D 18600
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Solution Summary
This solution is comprised of a detailed calculation to find the purchases of raw materials for February.
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Answer: C
Feb
Production of raw materials required ...
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