Question
Industries manufactures a popular interactive stuffed animal for children that requires four computer chips inside each toy. The company pays $1 for each computer chip.
Industries manufactures a popular interactive stuffed animal for children that requires
four computer chips inside each toy. The company pays $1
for each computer chip. To help to guard against stockouts of the computer chip,Donaldson
Industries has a policy that states that the ending inventory of computer chips should be at least 25%
he production schedule for the first four months of the year is as follows:
Stuffed animals to be produced | |
January . . . . | 5,800 |
February . . . . | 4,100 |
March . . . . . | 4,800 |
April . . . . . . . | 4,600 |
Prepare the direct materials budget by first calculating the total quantity needed, then complete the budget.
Donaldson Industries | ||||
Direct Materials Budget | ||||
For the Months of January through March | ||||
| January | February | March | Quarter |
Units to be produced |
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Multiply by: Quantity of direct materials needed per unit |
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Quantity needed for production |
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Plus: Desired ending inventory of direct materials |
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Total quantity needed |
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