Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sandra George. Marigold & Kenneth Fabricators purchasing manager, has just received the company's production budget for the first quarter Budgeted unit sales + Budgeted ending

image text in transcribedimage text in transcribed

Sandra George. Marigold & Kenneth Fabricators purchasing manager, has just received the company's production budget for the first quarter Budgeted unit sales + Budgeted ending inventory Total units required - Beginning inventory Budgeted production January 20,000 8,400 28,400 3.300 25,100 February 28.000 9.000 37,000 8.400 28.600 March 30,000 10.800 40.800 9.000 31.800 Quarter 78,000 10,800 88,800 3,300 85,500 Budgeted sales for April is 36.000 units and for May is 26,000 units Each brick requires 6 pounds of clay, and Sandra expects to pay $150 per pound of clay in the coming year. Company policy requires an ending direct materials inventory each month that will meet 10% of the following month's production needs. Company policy requires an ending finished goods inventory each month that will meet 30% of the following month's sales volume. Sandra expects to have 15.000 pounds of clay at a cost of $22.500 in inventory at the beginning of the year. Prepare Marigold & Kenneth's direct materials purchases budget for the first quarter. (Enter price per pound to 2 decimal places, e.g. 52.75.) January February 1 1 : 1 : $ $ $ Il March Quarter $ $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Practical Auditing Techniques For ISO/TS 16949

Authors: Raymond Ness

1st Edition

978-0595273126

More Books

Students also viewed these Accounting questions

Question

Can a company have a negative financing period?

Answered: 1 week ago