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Need help finishing this problem At the start of each month, management plans to have enough packets of raw materials on hand to cover the
Need help finishing this problem
At the start of each month, management plans to have enough packets of raw materials on hand to cover the next 30 days production requirements. Each packet of raw material costs $131.00. The company will have 2255 packets on hand on January 1, 20xx. ALL RAW MATERIALS PACKETS PURCHASED DURING LATE DECEMBER HAVE NOT BEEN PAID. Raw materials are payable on the 10th day of the month after the purchase.
Section 1: Direct Materials Budget \begin{tabular}{|c|c|c|c|c|c|c|} \hline & Jan & Feb & Mar & Apr & May & Qtr Total \\ \hline Required Production, Units (From Production) & 2,214 & 1,987 & 2,252 & & & 6,452 \\ \hline Packets Needed (Ratio of packet need per unit) & 1 & 1 & 1 & & & 1 \\ \hline Required Raw Material Units & 2,214 & 1,987 & 2,252 & & & 6,452 \\ \hline + Desired Ending Inventory, Units & 1,987 & 2,252 & 2,517 & & & 6,755 \\ \hline Total Needs, Units & 4,201 & 4,239 & 4,769 & & & 13,207 \\ \hline - Less Beginning Inventory, Units & 2,255 & 1,987 & 2,252 & & & 6,493 \\ \hline Packets to Purchase, Units & 1,946 & 2,252 & 2,517 & & & 6,715 \\ \hline Packet Cost PER Unit & 131 & 131 & 131 & & & 131 \\ \hline Total Packet Cost to Purchase, in \$ & $254,861 & $295,012 & $329,727 & & & $879,600 \\ \hline \multicolumn{7}{|c|}{ Section 2: Expected Cash Disbursements (to Cash Budget) } \\ \hline & Jan & Feb & Mar & Apr & May & Qtr Total \\ \hline \multicolumn{7}{|l|}{ December purchases, in \$ } \\ \hline \multicolumn{7}{|l|}{ January purchases, in \$ } \\ \hline \multicolumn{7}{|l|}{ February purchases, in \$ } \\ \hline \multicolumn{7}{|l|}{ March purchases, in \$ } \\ \hline \multicolumn{7}{|l|}{ Total Cash Disbursements, in \$ } \\ \hline \multicolumn{7}{|l|}{ Section 3: Inventory-Raw (to COGS) } \\ \hline & Jan & Feb & Mar & Apr & May & Qtr Total \\ \hline \multicolumn{7}{|l|}{ Inventory-Raw Materials, Beginning Balance, in \$ } \\ \hline Inventory-Raw Materials, Ending Balance, in \$ & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular}
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