Julie Finn is preparing the materials purchases budget for the second quarter.The production manager has provided the following production budget information: January - 60,000

Question

Quizplus · Accepted Answer

The correct answer is A because the materials purchases budget is based on the production budget. The production budget for the second quarter is 60,000 units. The materials purchases budget is calculated by multiplying the production budget by the materials cost per unit. The materials cost per unit is $4.50. Therefore, the materials purchases budget for the second quarter is 60,000 units x $4.50 per unit = $270,000.

Julie Finn Is Preparing the Materials Purchases Budget for the Second