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Coronado Auto has developed the following production plan for its new auto part. Coronado Auto has developed the following production plan for its new auto
Coronado Auto has developed the following production plan for its new auto part.
Coronado Auto has developed the following production plan for its new auto part. January February March April Budgeted production (units) 11,420 8,010 9,360 14,160 Each unit contains 3 pounds of raw material. The desired raw materials ending inventory is 142% of the next month's production needs, plus an additional 576 pounds. January's beginning inventory requirements equal 142% of the current month's production needs, plus an additional 576 pounds. Prepare the direct materials purchases budget for the first three months of the coming year. (Round answers to o decimal places, e.g. 5,275.) January February Quarter Budgeted production 11,420 March 8,010 9,360 28790 Standard pounds per unit 3 3 3 Production needs 34260 24030 28080 86370 Budgeted ending inventory 11950 13867 20683 20683 x Total DM required (lbs.) 46570 37897 48763 107053 X Beginning inventory 16792 11950 13867 42609 x x Budgeted purchases (lbs.) 29778 25947 34896 90621
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