Mariah is creating its budgets for next year. They expect production of 15995 units for Quarter 1 and 10352 units for Quarter 2 and the following requirements: Ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units and 3 pounds of raw materials are required for each unit produced. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in material. There are 8612 pounds of raw materials in inventory at the end of the current year. What is the budgeted Raw Material purchases in pounds in the first quarter of next year? Round ONLY your final answer to the nearest whole pound and enter as a positive number. Do NOT round intermediate calculations.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Mariah is creating its budgets for next year. They expect production of 15995 units for Quarter 1 and 10352 units for Quarter 2 and the following requirements: Ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units and 3 pounds of raw materials are required for each unit produced. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in material. There are 8612 pounds of raw materials in inventory at the end of the current year.
What is the budgeted Raw Material purchases in pounds in the first quarter of next year?
Round ONLY your final answer to the nearest whole pound and enter as a positive number. Do NOT round intermediate calculations.
Hint: Pounds NOT units
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