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Given the following information, the direct material purchase budget for Q2 is Company X has the following budgeted sales: Qi Q2 Q3 Q4 Sales 12,000
Given the following information, the direct material purchase budget for Q2 is Company X has the following budgeted sales: Qi Q2 Q3 Q4 Sales 12,000 10.000 11,000 9,000 Usage of DM for production = 8 gallons/unit: Budgeted cost for DM: S8/gallon for Q1, and $9/gallon for Q2-24 Beg. Inv. of Finished Goods 4,500; Beg. Inv. OFDM = 40,000 gallons; Target Finished Goods 30% of Next Quarter's Sales Target DM = 50% of Next Quarter's Usage a. $662,400 b. $756,000 C. $745,200 d. $700,400
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