Compute the budgeted quantity of plastic


Question:

Big Company manufactures keyboards. Management wishes to develop budgets for the upcoming quarter based on the following data:

sales in units 800 units
selling price per unit $60
inventory at beginning of the quarter (FG) 80 units
desired ending inventory (FG) 130 units
direct materials per unit 4 ounces plastic
plastic inventory at beginning of quarter 136 ounces
desired ending inventory of plastic 84 ounces
plastic cost $.18 per ounce

Compute the budgeted quantity of plastic which needs to be purchased for the next quarter.

850 ounces.
3,348 ounces.
3,452 ounces.
798 ounces.
902 ounces.

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Accounting Basics: Compute the budgeted quantity of plastic
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