Question
The Bakery with a View produces organic bread that is sold by the loaf. Each loaf requires 1/2 of a pound of flour. The bakery
The Bakery with a View produces organic bread that is sold by the loaf. Each loaf requires 1/2 of a pound of flour. The bakery pays $2.00 per pound of the organic flour used in its loaves. The bakery expects to produce the following number of loaves in each of the upcoming four months:
(Click the icon to view the units to be produced.) The bakery has a policy that it will have 20% of the following month's flour needs on hand at the end of each month. At the end of June, there were 152 pounds of flour on hand. Prepare the direct materials budget for the third quarter, with a column for each month and for the quarter.
July. . . . . . . . . . . . . . . . . . . | 1,520 loaves |
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August. . . . . . . . . . . . . . . . | 1,820 loaves |
September. . . . . . . . . . . . . | 1,700 loaves |
October. . . . . . . . . . . . . . . | 1,580 loaves |
Begin the direct materials budget by determining the total quantity needed, then complete the budget. (Enter the pounds per unit as a decimal to two places. Round your calculations to the nearest whole number.)
The Bakery with a View | ||||
Direct Materials Budget | ||||
For the Months of July through September | ||||
| July | August | September | Quarter |
Units to be produced |
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Multiply by: Pounds of flour needed per unit |
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Quantity needed (lbs) for production |
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Plus: Desired ending inventory of direct materials |
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Total quantity (lbs) needed |
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