Logan Enterprises' unit production is budgeted for the first six months of its upcoming fiscal year as follows:
Each unit of product requires 20 pounds of raw material that Logan purchases for $3.50 per pound.The company began the month of March with 13,160 pounds of raw material but wants its ending inventory of raw material to be 2% of the next month's production requirements beginning with the end of March.
Logan pays for 20% of its purchases in the month of purchase,with the remainder paid the following month.Determine the amount of planned cash disbursements for purchases of raw materials for April,May and June.

Question

Logan Enterprises' unit production is budgeted for the first six months of its upcoming fiscal year as follows:
  Each unit of product requires 20 pounds of raw material that Logan purchases for $3.50 per pound.The company began the month of March with 13,160 pounds of raw material but wants its ending inventory of raw material to be 2% of the next month's production requirements beginning with the end of March.
Logan pays for 20% of its purchases in the month of purchase,with the remainder paid the following month.Determine the amount of planned cash disbursements for purchases of raw materials for April,May and June.

Quizplus · Accepted Answer

The Answer of Logan Enterprises' unit production is budgeted for the first six months of its upcoming fiscal year as follows:
  Each unit of product requires 20 pounds of raw material that Logan purchases for $3.50 per pound.The company began the month of March with 13,160 pounds of raw material but wants its ending inventory of raw material to be 2% of the next month's production requirements beginning with the end of March.
Logan pays for 20% of its purchases in the month of purchase,with the remainder paid the following month.Determine the amount of planned cash disbursements for purchases of raw materials for April,May and June.

Logan Enterprises' Unit Production Is Budgeted for the First Six