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E 5 - 7 Direct Materials Budgeting Shanahan Corporation produces three types of media: CDs , DVDs , and double - layer DVDs . Shanahan
E Direct Materials Budgeting
Shanahan Corporation produces three types of media: CDs DVDs and doublelayer
DVDs Shanahan purchases cases for the media from a firm in Mexico and purchases
the labels from another supplier in Brazil. The following materials are required for
production:
CD DVD Double Layer DVD
Cases $ $ $
Labels
Beginning inventory for Shanahan is and cases for CDs DVDs and
double layer DVDs respectively. Management wants to have CD and double
layer DVD cases and DVD cases in ending inventory. Projected sales for the first
half of X are CD cases, DVD cases, and double layer DVD
cases.
Shanahans policy is to pay of its accounts with suppliers by the end of each half
year. The balance in accounts payable on January X is $
Prepare a budget for direct materials purchases for the first half of X
Prepare a budget for payments to direct materials suppliers for the first half of
X
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