Question
Helen Donald, Swifty & George Fabricators' purchasing manager, has just received the company's production budget for the first quarter. January February March Budgeted Production 24,800
Helen Donald, Swifty & George Fabricators' purchasing manager, has just received the company's production budget for the first quarter.
January | February | March | ||||||
---|---|---|---|---|---|---|---|---|
Budgeted Production | 24,800 | 28,750 | 31,750 |
Budgeted sales of April is 34,000 and its beginning inventory is 15,000. May month budgeted sales is 26,000. Company policy requires an ending finished goods inventory each month that will meet 25% of the following months sales volume. Each brick requires 6 pounds of clay, and Helen expects to pay $1.50 per pound of clay in the coming year. Company policy requires an ending direct materials inventory each month that will meet 10% of the following month's production needs. Helen expects to have 15,000 pounds of clay at a cost of $22,500 in inventory at the beginning of the year. Prepare Swifty & George's direct materials purchases budget for the first quarter. (Enter price per pound to 2 decimal places, e.g. 52.75.)
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