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Exercise D5-13 Rider Auto has developed the following production plan for its new auto part. January February March April Budgeted production (units) 12,000 8,000 13,000
Exercise D5-13
Rider Auto has developed the following production plan for its new auto part.
January | February | March | April | |||||||||
Budgeted production (units) | 12,000 | 8,000 | 13,000 | 15,000 |
Each unit contains 4 pounds of raw material. The desired raw materials ending inventory is 40% of the next months production needs, plus an additional 100 pounds. January's beginning inventory meets this requirement. Prepare the direct materials purchases budget for the first three months of the coming year. (Round answers to 0 decimal places, e.g. 5,275.)
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