Question
The budget components for Pina Colada Company for the quarter ended June 30 appear below. Pina Colada sells high performance coolers for $120 each. Budgeted
The budget components for Pina Colada Company for the quarter ended June 30 appear below. Pina Colada sells high performance coolers for $120 each. Budgeted sales and production for the next three months are:
Sales | Production | ||||
---|---|---|---|---|---|
April | 20,700 units | 26,000 units | |||
May | 50,800 units | 45,500 units | |||
June | 31,800 units | 28,500 units |
Pina Colada desires to have coolers on hand at the end of each month equal to 20 percent of the following months budgeted sales in units. On March 31, Pina Colada had 4,140 completed units on hand. Five pounds of plastic are required for each cooler. At the end of each month, Pina Colada desires to have 10 percent of the following months production material needs on hand. At March 31, Pina Colada had 13,000 pounds of plastic on hand. The materials used in production cost $0.70 per pound. The production of each cooler requires 0.10 hours of direct labor. Determine the budgeted cost of direct materials purchases for the month of April.
Budgeted cost of direct materials purchases for April | $enter the budgeted cost of direct materials purchases for April in dollars |
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