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Sue works in a company that manufactures shirts for school uniforms. For the past two years, she has been handling the production department's budgets for
Sue works in a company that manufactures shirts for school uniforms. For the past two years, she has been handling the production department's budgets for the company. The company has a policy to stock of next month's sales in finished goods FG inventory and of direct material inventory from the next month's direct materials DM requirement. The following production budget was in place for the current quarter of the year.
tableOct.,Nov.,Dec.,QuarterBudgeted Sales, Pairs, Pairs, Pairs,Targeted Ending FG Inventory, Pairs, Pairs,Total units required,Beginning FG Inventory,Budgeted Units to be produced,
Assume that the quantity of direct material required is meters of cloth for one shirt and the direct material cost per meter is $ Help Sue calculate the total budgeted cost of ending DM inventory for the month of November.
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