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Pillows.com makes decorative throw pillows for home use. The company sells the pillows to home decor retailers for 514 per pillow Each pillow requires 1
Pillows.com makes decorative throw pillows for home use. The company sells the pillows to home decor retailers for 514 per pillow Each pillow requires 1 10 yards at fabne, which the company obtains at a cost of $ per yard The company would like to maintain an ending stock of fabric equal to 20% of the next mont's production requirements. The company would also like to maintain an ending stock of finished pillows equal to 25% of the next month's sales Sales (in unts) are projected to be as follows for the first three months of the year (Click the icon to view the projected sales (in units) for the first three months of the year) Read the requirements - X More info 130.000 January February March 200.000 215.000 Pillows.com 1st Quarter February 203,750 1.10 March 216,250 Direct Materials Budget For the Quarter Ended March 31 January Units to be produced 147.500 Multiply by: Quantity of direct matenals needed per unit 1.10 Quantity needed for production 162.250 Plus Desired ending inventory of direct materials 44,825 Total quantity needed 207 075 Less Beginning inventory of direct materials Quantity to purchase 567,500 1.10 1.10 224 125 47 575 237,875 48,000 624,250 48,000 271,700 285,875 672,250 Multiply by Cost per pound Total cost of direct material purchases
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