Compute the budgeted quantity


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
Reference No:- TGS0679810

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