Question
Exercise 5-15 Marcy Jones, Vaughn & Hill Fabricators' purchasing manager, has just received the company's production budget for the first quarter. January February March Quarter
Exercise 5-15
Marcy Jones, Vaughn & Hill Fabricators' purchasing manager, has just received the company's production budget for the first quarter.
January
February
March
Quarter
Budgeted Production
11,639
23,497
20,911
56,047
Budgeted sales of April is 17,690 and its beginning inventory is 2,123. May month budgeted sales is 14,030. Company policy requires an ending finished goods inventory each month that will meet 12% of the following month's sales volume.
Each brick requires 3.00 pounds of clay, and Marcy expects to pay $0.24 per pound of clay in the coming year. Company policy requires an ending direct materials inventory each month that will meet 6% of the following month's production needs. Marcy expects to have 11,529 pounds of clay at a cost of $4,612 in inventory at the beginning of the year.
Prepare Vaughn & Hill's direct materials purchases budget for the first quarter. (Round answers to 0 decimal places, e.g. 5,275 and enter price per pound to 2 decimal places, e.g. 52.75.)
January February March Quarter
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