Posted by Hilary on .
Walt ’ s Whistles manufactures referee whistles.
At the end of February, Walt ’ s has 2,000 pounds of steel for whistles in inventory.
Walt ’ s expects to produce and sell 50,000 whistles in March.
Each whistle requires a standard quantity of 0.2 pounds of steel.
Walt wants to have 5,000 pounds of steel in inventory at the end of March.
Walt ’ s has no whistles in beginning finished goods inventory and does not plan to have any whistles in ending finished goods inventory.
Each pound of steel has a standard cost of $7.00.
Prepare Walt ’ s purchase budget for steel in March.
How much does Walt ’ s expect to spend on steel in March?
Anticipated steel expenditure: $