Bake Time makes and sells baking pans.Each pan uses 0.70 pounds of aluminum.Budgeted production and sales of pans in units for the next five months is as follows: $$\begin{array} { | l | c | c | c | c | c | }
\hline & \text { June } & \text { July } & \text { August } & \text { September } & \text { October } \
\hline \text { Budgeted production } & 22,180 & 21,940 & 24,940 & 26,240 & 23,720 \
\text { Budgeted sales } & 22,400 & 21,300 & 24,500 & 26,700 & 24,400 \
\hline
\end{array}$$ The company wants to maintain monthly ending inventories of aluminum equal to 15% of the following month's budgeted production needs, and monthly inventories of pans equal to 20% of the number needed for next month's sales.The cost of aluminum is $0.85 per pound.How much is budgeted raw materials to be reported on the company's balance sheet at August 31?

Question

Bake Time makes and sells baking pans.Each pan uses 0.70 pounds of aluminum.Budgeted production and sales of pans in units for the next five months is as follows: $$\begin{array} { | l | c | c | c | c | c | } 
\hline & \text { June } & \text { July } & \text { August } & \text { September } & \text { October } \
\hline \text { Budgeted production } & 22,180 & 21,940 & 24,940 & 26,240 & 23,720 \
\text { Budgeted sales } & 22,400 & 21,300 & 24,500 & 26,700 & 24,400 \
\hline
\end{array}$$ The company wants to maintain monthly ending inventories of aluminum equal to 15% of the following month's budgeted production needs, and monthly inventories of pans equal to 20% of the number needed for next month's sales.The cost of aluminum is $0.85 per pound.How much is budgeted raw materials to be reported on the company's balance sheet at August 31?

Quizplus · Accepted Answer

The Answer of Bake Time makes and sells baking pans.Each pan uses 0.70 pounds of aluminum.Budgeted production and sales of pans in units for the next five months is as follows: $$\begin{array} { | l | c | c | c | c | c | } 
\hline & \text { June } & \text { July } & \text { August } & \text { September } & \text { October } \
\hline \text { Budgeted production } & 22,180 & 21,940 & 24,940 & 26,240 & 23,720 \
\text { Budgeted sales } & 22,400 & 21,300 & 24,500 & 26,700 & 24,400 \
\hline
\end{array}$$ The company wants to maintain monthly ending inventories of aluminum equal to 15% of the following month's budgeted production needs, and monthly inventories of pans equal to 20% of the number needed for next month's sales.The cost of aluminum is $0.85 per pound.How much is budgeted raw materials to be reported on the company's balance sheet at August 31?

Bake Time Makes and Sells Baking Pans The Company Wants to Maintain Monthly Ending Inventories of Aluminum