Two pounds of raw materials are needed to produce one product. The desired ending balance of rawmaterials is 10% of the of the next month's production needs. (Refer to your answer in the 2nd attached picture).The beginning inventory of raw materials in April is 500 pounds and raw material cost per unit is P0.50/per pound. The desired ending inventory of raw materials for June amounted to 500 points. Usingthe table below, prepare a raw materials purchase budget for the month of April, May and June. Raw Materials Purchase BudgetАprilMayJuneTotalRequired production in unitsRaw materials required to produce one unit (pounds)Production needs (pounds)Add desired ending inventory of raw materials(pounds)Total needs (pounds)Less beginning inventory of raw materials (pounds)Raw materials to be purchased (pounds)Cost of raw materials per poundCost of raw materials to be purchased Imagine you are an owner of a company. Listed below are your budgeted monthly unit sales sold at P10per unit.MarchAprilMayJuneJulyBudgetedMonthly Unit2,000.003,000.004,000.005,000.004,500.00SalesThe desired finished goods inventory balance is 20% of the budgeted monthly unit sales of the followingmonth. The beginning balance of finished goods inventory in April amounted to 500 units while thedesired ending balance of finished goods inventory in June amounted to 500 units. Using the table below,prepare a production budget for the month of April, May and June.BDProduction BudgotApril3,000ParticularsMayJuneTotalBudgeted unit salesAdd: Desired ending finished goods inventory4,0001,0005,0005,00012,000900800900Total Needs3,8005,9001,0004,90012,900Less: Beginning finished goods inventoryRequired Production in units50050012,4008003,3004,200

The raw materials purchase budget is prepared to estimate the cost of raw materials to be purchased…

Answered: Two pounds of raw materials are needed…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 11E

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Two pounds of raw materials are needed to produce one product. The desired ending balance of raw materials is 10% of the of the next month's production needs. (Refer to your answer in the 2nd attached picture). The beginning inventory of raw materials in April is 500 pounds and raw material cost per unit is P 0.50/per pound. The desired ending inventory of raw materials for June amounted to 500 points. Using the table below, prepare a raw materials purchase budget for the month of April, May and June.

Raw Materials Purchase Budget
Аpril
May
June
Total
Required production in units
Raw materials required to produce one unit (pounds)
Production needs (pounds)
Add desired ending inventory of raw materials
(pounds)
Total needs (pounds)
Less beginning inventory of raw materials (pounds)
Raw materials to be purchased (pounds)
Cost of raw materials per pound
Cost of raw materials to be purchased

Imagine you are an owner of a company. Listed below are your budgeted monthly unit sales sold at P10
per unit.
March
April
May
June
July
Budgeted
Monthly Unit
2,000.00
3,000.00
4,000.00
5,000.00
4,500.00
Sales
The desired finished goods inventory balance is 20% of the budgeted monthly unit sales of the following
month. The beginning balance of finished goods inventory in April amounted to 500 units while the
desired ending balance of finished goods inventory in June amounted to 500 units. Using the table below,
prepare a production budget for the month of April, May and June.
B
D
Production Budgot
April
3,000
Particulars
May
June
Total
Budgeted unit sales
Add: Desired ending finished goods inventory
4,000
1,000
5,000
5,000
12,000
900
800
900
Total Needs
3,800
5,900
1,000
4,900
12,900
Less: Beginning finished goods inventory
Required Production in units
500
500
12,400
800
3,300
4,200

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