Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 8 - Master Budgeting - The Foundational 15 - Required - Page 372: 5

Answer

$52,900

Work Step by Step

You have to take answer (4), multiply it by 5 to get the pounds needed: $10,400\times5 = 52,000$ then add the ending inventory of 10% of next month's need: $61,000\times(10\div100)=6,100$ and remove the beginning inventory (10% of current month): $52,000\times0.1=5,200$ All of this makes: $52,000+6,100-5,200=52,900$
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