each unit requires 1.8 yd of fabric to be produced. at the end of each quarter, 20% of the next quarter's production needs for material should be at hand. budgeted purchases of material for the second quarter would be g

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MandieRayl2031idn MandieRayl2031idn

07-01-2021
Business

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each unit requires 1.8 yd of fabric to be produced. at the end of each quarter, 20% of the next quarter's production needs for material should be at hand. budgeted purchases of material for the second quarter would be g

Sagot :

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Akiran007idn Akiran007idn · Answer 1 · 2021-01-10T14:05:01-05:00

Answer:

1.8 yards

Explanation:

Production requirement 1.8 yards

Ending inventory = 20% of 1.8 yards= 20/100 * 1.8= 0.36 yards

Materials Required= 1.8-0.36= 1.44 yards

If the material on hand is 0.36 yards i.e 20 % of the production requirement.Budgeted purchases for the second quarter would 1.8 yards because when 0.36 yards is available as the ending inventory. But materials on hand must have a balance of 0.36 yards for the next quarter so it would not effect the purchases.

To maintain the balance of materials on hand the amount of purchases made is 1.8 yards as 0.36 yards will be kept for the third quarter and 0.36 is already present for the second quarter

1.44 yards for production + 0.36 yards for the ending inventory= 1.8 yards

Sagot :

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