Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Course Name: Managerial Accounting, no pictures or handwriting, this needs an expert, please Q.2 Prepare a Direct Material Purchase Budget with the following information. Plastic

Course Name: Managerial Accounting, no pictures or handwriting, this needs an expert, please

Q.2 Prepare a Direct Material Purchase Budget with the following information.

Plastic is the only direct material used in Framecrafts picture frames.

Each picture frame required 8 ounces of plastic.

Framecrafts Purchasing Department has estimated the cost of the plastic used in the picture frames at $ 0.06 per ounce.

Assume that each quarters desired units of ending direct materials inventory become the next quarters desired units of beginning direct materials inventory.

Framecrafts desired level of ending direct materials inventory is 10 percent of the next quarters budgeted production unit.

Beginning inventory of direct materials for the first quarter is 12000 whereas the ending direct material inventory for the fourth quarter is 20000.

Particulars

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Year Total

Total Budgeted Production Units

15000

30000

20000

25000

90000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Reporting

Authors: Alan Melville

7th Edition

1292293128, 9781292293127

More Books

Students also viewed these Accounting questions

Question

=+1. How will you measure awareness objectives?

Answered: 1 week ago

Question

=+2. How will you measure acceptance objectives?

Answered: 1 week ago

Question

What distinguishes craft and industrial unions from each other?

Answered: 1 week ago