Question 26 Blueberry Corporation has budgeted production fo

Question 26 Blueberry Corporation has budgeted production for the next year as follows: Not yet answered Points out of 3 PFlag Quarter First Second Third Fourth 60,000 70,000 90,000 90,000 Production in units... question 5.3 pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter\'s production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be: Select one: O a. 371,000 O b. 397,500 O c. -22,745 O d. 490.250 Question 27 Not yet answered Saunders Manufacturing is in the process of preparing Its annual budget. The following beginning and ending inventry levels are planned for the year: Points out of 3 Beginning Inventory Ending inventon

Solution

Required production in units=70000
raw material required per unit=5.3
Total raw materials required=70000*5.3=371000
Add : desired ending inventory=25%*5.3*90000=119250
Total raw material needed=371000+119250=490250
Less:beg raw material inventory=25%*5.3*70000=92750
Raw material purchased=490250-92750=397500

It is option B