The Tobler Company has budgeted production for next year as follows: Four pounds of raw materials are required for each unit produced.Raw materials on hand at the start of the year total 4,000 pounds.The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs.Budgeted purchases of raw materials in the third quarter would be:

Question

Quizplus · Accepted Answer

11eaaee8_6710_a12a_933a_792b5cf714e2_TB5186_00 Materials to be purchased = Ending inventory + Materials used - Beginning inventory = (14,000 F1F1F1S1F1F1F10 10%) + 16,000 - (16,000 F1F1F1S1F1F1F10 10%) = 1,400 + 16,000 - 1,600
= 15,800 units
15,800 units F1F1F1S1F1F1F10 4 pounds per unit = 63,200 pounds

The Tobler Company Has Budgeted Production for Next Year as Follows