Kasson company has budgeted units to be produced for the next five months as follows:
budgeted units to be produced
june 23,000
july 19,000
august 36,000
september 14,000
october 27,000
kasson company used the following information in creating its master budget for the year:
1. ending direct materials inventory for each month should be equal to 140% of the next month's production needs.
2. each unit produced requires 3 pounds of direct materials.
3. direct materials are purchased for $2.50 per pound.
assume kasson company pays for 40% of a month's purchase of direct materials in the month of purchase and the other 60% is paid in the following month. calculate kasson company's budgeted accounts payable at june 30.
budgeted units to be produced
june 23,000
july 19,000
august 36,000
september 14,000
october 27,000
kasson company used the following information in creating its master budget for the year:
1. ending direct materials inventory for each month should be equal to 140% of the next month's production needs.
2. each unit produced requires 3 pounds of direct materials.
3. direct materials are purchased for $2.50 per pound.
assume kasson company pays for 40% of a month's purchase of direct materials in the month of purchase and the other 60% is paid in the following month. calculate kasson company's budgeted accounts payable at june 30.