Question
Maxfield Inc. produces pants, called Relaxed. The company sales budget estimates that 545,250 of the Relaxed pants will be sold during 2021. The Production Budget
Maxfield Inc. produces pants, called Relaxed. The company sales budget estimates that 545,250 of the Relaxed pants will be sold during 2021. The Production Budget requires 547,600 units of Relaxed pants be manufactured. The Relaxed pants require 4.7 yards of denim material, a zipper, and 43 yards of thread. Each yard of denim material costs $9.50, the zipper costs $2 each, and the thread is $.075 per yard. There is enough material to make 22,250 Relaxed pants at the beginning of the year. The desired amount of materials left in ending inventory is to have enough to manufacture 37,000 jeans. Prepare a Direct Materials Purchases Budget.
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