Acti Manufacturing Corporation Is Estimating the Following Raw Material Purchases

question 88

Multiple Choice

Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:
At Acti, 40% of raw materials purchases are normally paid for in the month of purchase. The remaining 60% is paid for in the month following the purchase.
-If the budgeted direct labor cost for April is $201,600,then the budgeted production of Pods for April would be:

• A) 21,000 units
• B) 29,400 units
• C) 18,273 units
• D) 15,000 units

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Definitions:

Direct Materials

The raw materials that can be directly attributed to the production of goods.

Cost of Goods Manufactured

The total cost of producing goods during a specific period, including materials, labor, and overhead.

Cost of Goods Manufactured

Represents the total production cost of goods that are completed and ready for sale during a specific accounting period.

Current Year

Refers to the present fiscal or calendar year in which a business or organization is operating.