Question
Marcy Jones, Bonita & Hill Fabricators' purchasing manager, has just received the company's production budget for the first quarter. January February March Quarter Budgeted Production
Marcy Jones, Bonita & Hill Fabricators' purchasing manager, has just received the company's production budget for the first quarter.
January | February | March | Quarter | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Budgeted Production | 19,064 | 34,069 | 30,189 | 83,322 |
Budgeted sales of April is 25,810 and its beginning inventory is 4,646. May month budgeted sales is 20,470. Company policy requires an ending finished goods inventory each month that will meet 18% of the following months sales volume. Each brick requires 4.00 pounds of clay, and Marcy expects to pay $0.36 per pound of clay in the coming year. Company policy requires an ending direct materials inventory each month that will meet 9% of the following month's production needs. Marcy expects to have 16,821 pounds of clay at a cost of $6,728 in inventory at the beginning of the year. Prepare Bonita & Hill's direct materials purchases budget for the first quarter. (Round answers to 0 decimal places, e.g. 5,275 and enter price per pound to 2 decimal places, e.g. 52.75.)
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