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answer plz Aloha Cookies Ltd manufactures cookies. They have to prepare the Direct Material Budget for the year 2021 for one of their product line
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Aloha Cookies Ltd manufactures cookies. They have to prepare the Direct Material Budget for the year 2021 for one of their product line called Paradise Chocolate Cookies. The major materials used in the production of cookies are cocoa powder, baking soda, flour. They want to prepare the budget for Flour first. In order to produce 1 kg cookies, 750 grams or 0.75 kg of flour is used. The cost for 1 kg of flour is $2.80 The sales for cookies are budgeted to be 152000 kg for the whole year with 25% being in the first quarter, 35% in the second quarter, 15% in the third quarter and balance in the fourth quarter. The beginning inventory in the first quarter of the finished cookies is 10000 kg. The ending inventory in the first second third and fourth quarter of the finished cookies is 12000 kg, 7000 kg, 15000 kg and 18000 kg respectively. The beginning Inventory of Flour is 10% of the first quarter production of finished cookies. The company maintains 10 % of the current quarter sales as the ending inventory of flour for every quarter. Given the information calculate the flour requirement in all the four quarters and the cost of flour in all the four quartersStep by Step Solution
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