Question
Richetti Industrial has estimated that production for the next five quarters will be: Production Information 1st quarter, 2020 55,800 units 2nd quarter, 2020 50,400 units
Richetti Industrial has estimated that production for the next five quarters will be:
| Production Information | ||
|---|---|---|
| 1st quarter, 2020 | 55,800 units | |
| 2nd quarter, 2020 | 50,400 units | |
| 3rd quarter, 2020 | 61,200 units | |
| 4th quarter, 2020 | 48,000 units | |
| 1st quarter, 2021 | 57,400 units | |
Finished units of production require 6 pounds of raw material per unit. The raw material cost is $7 per pound. There is $351,540 of raw material on hand at the beginning of the first quarter, 2020. Richetti 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 Richetti Industrial for 2020.
| Richetti Industrial Direct Materials Purchases Budget For the Year Ending December 31, 2020 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year | |||||||
| select an opening direct materials purchases budget item Cost of raw material needed for productionBeginning inventory of raw materialRequired raw material purchasesCost of raw material per unitUnits to be producedDesired ending inventory of raw materialTotal material needed | enter a number of units | enter a number of units | enter a number of units | enter a number of units | enter a number of units | ||||||
| select an item Beginning inventory of raw materialDesired ending inventory of raw materialCost of raw material per unitRequired raw material purchasesTotal material neededCost of raw material needed for productionUnits to be produced | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | ||||||
| select a summarizing line for the first part Cost of raw material per unitUnits to be producedCost of raw material needed for productionRequired raw material purchasesBeginning inventory of raw materialTotal material neededDesired ending inventory of raw material | enter a total dollar amount for the first part | enter a total dollar amount for the first part | enter a total dollar amount for the first part | enter a total dollar amount for the first part | enter a total dollar amount for the first part | ||||||
| select between addition and deduction AddLess: select an item Beginning inventory of raw materialCost of raw material per unitRequired raw material purchasesTotal material neededUnits to be producedDesired ending inventory of raw materialCost of raw material needed for production | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||||
| select a summarizing line for the second part Required raw material purchasesTotal material neededDesired ending inventory of raw materialUnits to be producedCost of raw material needed for productionBeginning inventory of raw materialCost of raw material per unit | enter a total dollar amount for the second part | enter a total dollar amount for the second part | enter a total dollar amount for the second part | enter a total dollar amount for the second part | enter a total dollar amount for the second part | ||||||
| select between addition and deduction AddLess: select an item Beginning inventory of raw materialUnits to be producedRequired raw material purchasesDesired ending inventory of raw materialCost of raw material needed for productionCost of raw material per unitTotal material needed | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||||
| select a closing direct materials purchases budget item Required raw material purchasesUnits to be producedCost of raw material needed for productionTotal material neededCost of raw material per unitDesired ending inventory of raw materialBeginning inventory of raw material | $enter a total amount for the direct materials purchases budget | $enter a total amount for the direct materials purchases budget | $enter a total amount for the direct materials purchases budget | $enter a total amount for the direct materials purchases budget | $enter a total amount for the direct materials purchases budget | ||||||
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