1) Irma Company makes a mocha birthday cake and has prepared a sales budget of 15,000 cakes for the first quarter of 2016. The company has an inventory of two (2) cakes on hand at December 31, 2019 and has a target finished goods inventory of four (4) cakes at the end of the first quarter, 2020.

It takes two (2) pounds of cake batter to produce a birthday cake. The company has 1,208 pounds of batter on hand at December 31, 2019 and a target ending inventory of 3,002 pounds at the end of the first quarter, 2020. The cake batter costs $2.50 a pound.

What is the cost of direct material used in the first quarter of 2020?

2)

Picture Pretty manufactures custom picture frames. Sales for August are expected to be 10,000 units of various sizes. Beginning inventory and target ending inventory of finished picture frames is zero.

The average frame requires four (4) feet of framing, one (1) square foot of glass and two (2) square feet of backing.

Beginning inventory contains 1,500 feet of framing, 500 square feet of glass and 500 square feet of backing. Ending inventory of materials should be 150% of beginning inventory.

Determine the quantity of framing, glass and backing that is to be purchased during August.