Question
Bonita Auto has developed the following production plan for its new auto part. January February March April Budgeted production (units) 10,000 9,000 13,000 18,000 Each
Bonita Auto has developed the following production plan for its new auto part.
January | February | March | April | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Budgeted production (units) | 10,000 | 9,000 | 13,000 | 18,000 |
Each unit contains 4 pounds of raw material. The desired raw materials ending inventory is 30% of the next months production needs, plus an additional 300 pounds. Decembers ending inventory meets this requirement. Prepare the direct materials purchases budget for the first three months of the coming year.
January | February | March | Quarter | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Budgeted production | enter a number of units | enter a number of units | enter a number of units | enter a number of units | ||||||
Standard pounds per unit | enter a number of pounds | enter a number of pounds | enter a number of pounds | enter a number of pounds | ||||||
Production needs | enter a total number of pounds for the first part | enter a total number of pounds for the first part | enter a total number of pounds for the first part | enter a total number of pounds for the first part | ||||||
Budgeted ending inventory | enter a number of pounds | enter a number of pounds | enter a number of pounds | enter a number of pounds | ||||||
Total DM required (lbs.) | enter a total number of pounds for the second part | enter a total amount of pounds for second part | enter a total number of pounds for the second part | enter a total number of pounds for the second part | ||||||
Beginning inventory | enter a number of pounds | enter a number of pounds | enter a number of pounds | enter a number of pounds | ||||||
Budgeted purchases (lbs.) | enter a total number of pounds | enter a total number of pounds | enter a total number of pounds |
please show how you get budget ending inventory, thank you!
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