Each unit produced by Terra Electronics requires 4 pounds of raw materials.The raw materials inventory must be equal to 10% of the next month's production.Each pound of raw materials costs $2.00.Budgeted production information follows. $$\begin{array} { l l }
\text { April } & 28,000 \text { units } \
\text { May } & 30,000 \text { units } \
\text { June } & 25,000 \text { units }
\end{array}$$ How much are budgeted purchases of raw materials for May?

Question

Each unit produced by Terra Electronics requires 4 pounds of raw materials.The raw materials inventory must be equal to 10% of the next month's production.Each pound of raw materials costs $2.00.Budgeted production information follows. $$\begin{array} { l l } 
\text { April } & 28,000 \text { units } \
\text { May } & 30,000 \text { units } \
\text { June } & 25,000 \text { units }
\end{array}$$ How much are budgeted purchases of raw materials for May?

Quizplus · Accepted Answer

The Answer of Each unit produced by Terra Electronics requires 4 pounds of raw materials.The raw materials inventory must be equal to 10% of the next month's production.Each pound of raw materials costs $2.00.Budgeted production information follows. $$\begin{array} { l l } 
\text { April } & 28,000 \text { units } \
\text { May } & 30,000 \text { units } \
\text { June } & 25,000 \text { units }
\end{array}$$ How much are budgeted purchases of raw materials for May?

Each Unit Produced by Terra Electronics Requires 4 Pounds of Raw