Question
Camera Crawlers manufactures picture frames. Sales for December are expected to be 10,000 units of various sizes. Historically, the average frame requires fourmetresof framing, one
Camera Crawlers manufactures picture frames. Sales for December are expected to be 10,000 units of various sizes. Historically, the average frame requires fourmetresof framing, one squaremetreof glass, and two squaremetresof backing. Beginning inventory includes 1,500metreof framing, 500 squaremetresof glass, and 500 squaremetresof backing. Current prices are $0.30 permetreof framing, $6.00 per squaremetreof glass, and $2.25 per squaremetreof backing. Ending inventory should be 150% of beginning inventory. Purchases are paid for in the month acquired.
Required:
A- Determine the quantity of framing, glass, and backing that is to be purchased during December
B-Determine the total costs of direct materials for December purchases.
C - What is the purpose of a budget?
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