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Vanyuwa [196]
2 years ago
14

Garry's Corporation's most recent production budget indicates the following required production:

Business
1 answer:
quester [9]2 years ago
5 0

Answer:

Option B,793,750 is the correct option

Explanation:

                                                                       October      November December

Production(210,000,175,000,110,000)*5    1,050,000      875,000      550,000

Opening inventory                                                -             (218,750)  (137,500)

Closing inventory(25% of next production)   218,750       137,500       -

November purchases of raw material                               793,750

October closing inventory =25%*875,000

November closing inventory=25%**550,000

                                               = 137,500.00  

The quantity of raw materials to be purchased in November is 793,750

The rationale is that opening inventory of raw materials is already in stock hence should be deducted from planned production volume

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