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Alpine Breads produces organic bread that is sold by the loaf. Each loaf requires 0.5 kg of flour. The company pays $3.60 per kilogram of
Alpine Breads produces organic bread that is sold by the loaf. Each loaf requires 0.5 kg of flour. The company pays $3.60 per kilogram of the organic flour used in its loaves. Alpine Breads expects to produce the following number of loaves in each of the upcoming four months: (Click the icon to view the units to be produced.) The company's policy is to have 10% of the following month's flour needs on hand at the end of each month. At the end of June, there were 95 kg of flour on hand. Prepare the direct materials budget for the third quarter, with a column for each month and for the quarter. Begin the direct materials budget by determining the total quantity needed, and then complete the budget. (Enter the kilogram per unit as a decimal to two places. Round your calculations to the nearest whole number.) Alpine Breads Direct Materials Budget For the Months of July through September July August 1440 | 1900 Data Table September 1680 Quarter 5020 Units to be produced Kilograms of flour needed per unit 0.5 950 840 2510 Quantity needed (kg) for production Plus: Desired ending inventory of direct materials July ....... August ............... September ..... October.. 1,440 loaves 1,900 loaves 1,680 loaves 1,580 loaves Total quantity (kg) needed 1034 919 2589 Less: Beginning inventory of direct materials Quantity (kg) to purchase Cost per kilogram 720 939 835 2494 Print Done 3.6 3.6 3.6 3.6 2592 3380.4 3006 8978.4 Total cost of direct material purchases
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