Question
Paver Industrial has estimated that production for the next five quarters will be: Production Information 1st quarter, 2020 39,600 units 2nd quarter, 2020 36,000 units
Paver Industrial has estimated that production for the next five quarters will be:
Production Information | ||
1st quarter, 2020 | 39,600 units | |
2nd quarter, 2020 | 36,000 units | |
3rd quarter, 2020 | 43,200 units | |
4th quarter, 2020 | 33,600 units | |
1st quarter, 2021 | 41,200 units |
Finished units of production require 6 pounds of raw material per unit. The raw material cost is $7 per pound. There is $249,480 of raw material on hand at the beginning of the first quarter, 2020. Paver desires to have 15 percent of next quarter's material requirements on hand at the end of each quarter. Prepare quarterly direct materials purchases budgets for Paver Industrial for 2020.
ROEHLER INDUSTRIES
Direct Materials Purchases Budget
For the Year Ending December 31, 2020
________________________________________________________________________________________________________
--------------------------------------------------------------------- Quarter 1 ------- Quarter 2 -------- Quarter 3 -------- Quarter 4 -------- Year
Units to be produced [ # ]
Cost of raw material per unit [ # ]
Cost of raw material needed for production [ # ]
Add desired ending inventory of raw material [ # ]
Total material needed [ # ]
Less beginning inventory of raw material [ # ]
Required raw material purchases [ # ]
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