Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

NancyDaniel, Waterway & Paul Fabricators' purchasing manager, has just received the company's production budget for the first quarter. January February March Quarter Budgeted unit sales

NancyDaniel, Waterway & Paul Fabricators' purchasing manager, has just received the company's production budget for the first quarter.

January

February

March

Quarter

Budgeted unit sales

21,000

28,000

33,000

82,000

+ Budgeted ending inventory

5,600

6,600

6,800

6,800

Total units required

26,600

34,600

39,800

88,800

- Beginning inventory

3,200

5,600

6,600

3,200

Budgeted production

23,400

29,000

33,200

85,600

Budgeted sales for April is 34,000 units and for May is 26,000 units.

Each brick requires 6 pounds of clay, and Nancy 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. Company policy requires an ending finished goods inventory each month that will meet 20% of the following month's sales volume. Nancy expects to have 15,000 pounds of clay at a cost of $22,500 in inventory at the beginning of the year.

Prepare Waterway & Paul's direct materials purchases budget for the first quarter. (Enter price per pound to 2 decimal places, e.g. 52.75.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

How is social networking used in informal training?

Answered: 1 week ago

Question

What are some career development methods?

Answered: 1 week ago