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Each unit of product Zeta requires 3 kg of raw material and 4 direct labour hours. Material costs $2 per kg and the direct labour rate is $7 per hour. The production budget for Zeta for April to June is as follows.
Raw material opening inventories are budgeted as follows.
The closing inventory budgeted for June is 3,900 kg Material purchases are paid for in the month following purchase. What is the figure to be included in the cash budget for June in respect of payments for purchases? A. $48,800 B. $50,200 C. $50,600 D. $25,100 |