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Quarter numbers? Rider Auto has developed the following production plan for its new auto part. January 12,000 February 8,000 March 13,000 April 15,000 Budgeted production
Quarter numbers?
Rider Auto has developed the following production plan for its new auto part. January 12,000 February 8,000 March 13,000 April 15,000 Budgeted production (units) Each unit contains 4 pounds of raw material. The desired raw materials ending inventory is 40% of the next month's production needs, plus an additional 100 pounds. December's ending inventory meets this requirement. Prepare the direct materials purchases budget for the first three months of the coming year. January February March Budgeted production 12000 8000 13000 Standard pounds per unit 4 4 Production needs 48000 32000 52000 Budgeted ending inventory 12900 20900 24100 Total DM required (lbs.) 60900 52900 76100 Beginning inventory 19300 i 12900 i 20900 Budgeted purchases (lbs.) 41600 40000 55200 January 12,000 February 8,000 March 13,000 April 15,000 Budgeted production (units) Each unit contains 4 pounds of raw material. The desired raw materials ending inventory is 40% of the next month's production needs, plus an additional 100 pounds. December's ending inventory meets this requirement. Prepare the direct materials purchases budget for the first three months of the coming year. January February March Quarter 12000 8000 13000 | 4 4 4 4 48000 32000 52000 12900 20900 24100 60900 52900 76100 19300 i 12900 i 20900 i 41600 40000 55200Step by Step Solution
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