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How did we get the 33125 meters for the budgeted cost of purchase! please show work with an explanation! Key Co. manufactures beanies. The budgeted
How did we get the 33125 meters for the budgeted cost of purchase! please show work with an explanation!
Key Co. manufactures beanies. The budgeted units to be produced and sold are below. August September Expected Production 6,500 7,000 Expected Sales 6,200 7,100 It takes 5 metres of yarn to produce a beanie. The company's policy to maintain yarn at the end of each month equal to 25% of the next month's production needs and to maintain a finished goods inventory at the end of each month equal to 30% of next month's anticipated production needs. The cost of yarn is $0.75 a metre. At August 1, 4,250 metres of yarn were on hand Fill in the blanks below using the information above A. How many metres of yarn are needed for production in August B. What is the amount of desired ending inventory for materials (in meters) at the end of August C. What is the amount of beginning inventory for materials (in meters) at August 1st? metres D. How many metres of material need to be purchased in August? E. What is the budgeted amount of cost for August purchases? ] metres rounded to the nearest $1 Solution to Question 1-BE155- Ch 10: Units to be produced 6,500 Metres needed per unit S0.75 Cost per metre Budgeted cost of purchases (33,125 metres x $0.75)Step by Step Solution
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