Purchases Budget
Crosser Company budgets on a quarterly basis. The following beginning and ending inventory levels (in units) are planned for the first and second quarters of 2012:
Required:
If Crosser Company were to manufacture 400,000 finished units (in total) during the first two quarters of 2012, how many units of raw material would it need to purchase?
Prepare the purchases budget for the first six months of 2012. Enter all amounts as positive numbers
Required production in units _______
Raw material needed per unit _______
Units of raw material needed _______
Add: Desired ending inventory _______
Total budgeted needs _______
Less: Beginning inventory _______
Units of raw material to be purchased _______
(Start with required production in units and multiply raw materials needed per unit for units of raw material needed. Add desired ending inventory to units of raw materials needed for total budgeted needs. Subtract beginning inventory from total budgeted needs for units of raw material to be purchased.)