Question
Camera Crawlers manufactures picture frames. Sales for December are expected to be 10,000 units of various sizes. Historically, the average frame requires four metres of
Camera Crawlers manufactures picture frames. Sales for December are expected to be 10,000 units of various sizes. Historically, the average frame requires four metres of framing, three square metre of glass, and three square metres of backing. Beginning inventory includes 900 metre of framing, 400 square metres of glass, and 400 square metres of backing. Current prices are $1.00 per metre of framing, $5.00 per square metre of glass, and $3.00 per square metre of backing. Ending inventory should be 150% of beginning inventory. Purchases are paid for in the month acquired.
Required:
- Determine the quantity of framing, glass, and backing that is to be purchased during December. (10 marks)
- Determine the total costs of direct materials for December purchases.
(10 marks)
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