Share
Explore BrainMass

Budgeted purchases of material A for the second quarter

Please see the attachment

Quick Inc. has budgeted production for next year as follows:

Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:

Attachments

Solution Preview

Solution:

Two pounds are required for each unit. The company maintains stock of 25% of production needs. 30,000 units are on hand to ...

Solution Summary

Quick Inc. has budgeted production for next year as follows:

Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:

$2.19