Answered step by step
Verified Expert Solution
Question
1 Approved Answer
can you please help me with managerial accounting problem Beckett Industries manufactures a popular interactive stuffed animal for children that requires two computer chips inside
can you please help me with managerial accounting problem
Beckett Industries manufactures a popular interactive stuffed animal for children that requires two computer chips inside each toy. The company pays $4 for each computer chip. To help to guard against stockouts of the computer chip, Beckett Industries has a policy that states that the ending inventory of computer chips should be at least 20% of the following month's production needs. The production schedule for the first four months of the year is as follows: (Click the icon to view the production schedule.) Requirement Prepare a direct materials budget for the first quarter that shows both the number of computer chips needed and the dollar amount of the purchases in the budget. Prepare the direct materials budget by first calculating the total quantity needed, then complete the budget. Beckett Industries i Data Table Quarter 14,800 Stuffed animals to be produced March 4,800 2 9,600 2 2 January ..... 5,800 February .... Direct Materials Budget For the Months of January through March January February Units to be produced 5,800 4,200 Multiply by: Quantity of direct materials needed per unit Quantity needed for production 11,600 8,400 Plus: Desired ending inventory of direct materials 1,680 Total quantity needed 13,280 10,320 Less: Beginning inventory of direct materials (2320) (1680) Quantity to purchase 10960|| Multiply by: Cost per unit 4,200 29,600 1,600 1.920 1,600 March ...... 4,800 4,000 April ........ 11,200 (1920) 31,200 (2320) Print 8640] Done 9280 Print 28880 Done Total cost of direct material purchasesStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started