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Annie's homemade prepares a direct materials budget for its ice cream base, which is the foundational component of all ice cream flavors. It includes ingredients,

Annie's homemade prepares a direct materials budget for its ice cream base, which is the foundational component of all ice cream flavors. It includes ingredients, such as whole milk, heavy cream, and sugar that provide a "blank canvas" For creating create specific flavors. The company buys ice cream from suppliers for $62 per case each of which contains 22.5 gallon bladders. Each 2.5 gallon bladders provide an average of 40 servings of ice cream. The company always maintains ending inventory equal to 20% of next quarters production needs
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Annie's Homemade prepares a direct materials budget for its ice cream base, which is the foundational component of all ice cream flavors. It includes ingredlents such as whote milk, heavy cream, and sugar that provide a "blank canvas" for creating create specific flavors, The company buys ice cream base from a supplier for $62 per case, each of which contains two 2.5 -gallon bladders. Each 2.5 . gallon bladder produces an average of 40 servings of ice cream. The company always maintains ending inventories equal to 20% of next quarter's production needs. The estimated quarterly production (in servings) for next year are as follows: Required: Prepare a direct materials budget by quarter and in total for next year

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