The budget components for Goebel Company for the quarter ended June 30 appear below. McLeod sells trash cans for $12 each. Budgeted sales and production for the next three months are:
Goebel desires to have trash cans on hand at the end of each month equal to 20 percent of the following month's budgeted sales in units. On March 31, Goebel had 4,000 completed units on hand. The number of trash cans to be produced in April and May are 26,000 and 46,000, respectively. Seven pounds of plastic are required for each trash can. At the end of each month, Goebel desires to have 10 percent of the following month's production material needs on hand. At March 31, Goebel had 18,200 pounds of plastic on hand. The materials used in production cost $0.60 per pound. Each trash can produced requires 0.10 hours of direct labor.
Instructions
Determine how much the materials purchases budget will be for the month ending April 30.

Question

The budget components for Goebel Company for the quarter ended June 30 appear below. McLeod sells trash cans for $12 each. Budgeted sales and production for the next three months are:  
Goebel desires to have trash cans on hand at the end of each month equal to 20 percent of the following month's budgeted sales in units. On March 31, Goebel had 4,000 completed units on hand. The number of trash cans to be produced in April and May are 26,000 and 46,000, respectively. Seven pounds of plastic are required for each trash can. At the end of each month, Goebel desires to have 10 percent of the following month's production material needs on hand. At March 31, Goebel had 18,200 pounds of plastic on hand. The materials used in production cost $0.60 per pound. Each trash can produced requires 0.10 hours of direct labor.
Instructions
Determine how much the materials purchases budget will be for the month ending April 30.

Quizplus · Accepted Answer

The Answer of The budget components for Goebel Company for the quarter ended June 30 appear below. McLeod sells trash cans for $12 each. Budgeted sales and production for the next three months are:  
Goebel desires to have trash cans on hand at the end of each month equal to 20 percent of the following month's budgeted sales in units. On March 31, Goebel had 4,000 completed units on hand. The number of trash cans to be produced in April and May are 26,000 and 46,000, respectively. Seven pounds of plastic are required for each trash can. At the end of each month, Goebel desires to have 10 percent of the following month's production material needs on hand. At March 31, Goebel had 18,200 pounds of plastic on hand. The materials used in production cost $0.60 per pound. Each trash can produced requires 0.10 hours of direct labor.
Instructions
Determine how much the materials purchases budget will be for the month ending April 30.

The Budget Components for Goebel Company for the Quarter Ended