A company budgets production of 5,000 units in May and 6,375 units in June. Each unit...
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A company budgets production of 5,000 units in May and 6,375 units in June. Each unit requires 4 pounds of direct materials. Direct materials cost $5 per pound. The company maintains direct materials inventory equal to 40% of next month's direct materials requirement. The company has 8,000 pounds of direct materials inventory on April 30. Prepare the direct materials budget for May. Direct Materials Budget Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases May A company budgets production of 5,000 units in May and 6,375 units in June. Each unit requires 4 pounds of direct materials. Direct materials cost $5 per pound. The company maintains direct materials inventory equal to 40% of next month's direct materials requirement. The company has 8,000 pounds of direct materials inventory on April 30. Prepare the direct materials budget for May. Direct Materials Budget Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases May
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Direct Materials Budget May Heres the direct materials budget for May Description Quantity Unit Pric... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date:
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