Question
The Production Department is ready to budget for Direct Material Purchases. The Direct Materials needed are 15kg/unit and the cost of the raw materials is
The Production Department is ready to budget for Direct Material Purchases. The Direct Materials needed are 15kg/unit and the cost of the raw materials is $1.50/kg. Production would like to have 10% of next quarters production needs as the desired ending inventory of raw materials. The assumed Q1 beginning inventory of raw materials and the ending inventory for Q4 is provided.
- Please prepare the Direct Materials Budget
| Direct Materials Budget | |||||
| For the Year Ended December 31, 2019 | |||||
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year | |
| Required Production in Cases | 12,000 | 12,000 | 20,000 | 19,000 | 73,000 |
| Production needs | |||||
| Add: Desired ending inventory of raw materials | 22,500 | 22,500 | |||
| Total needs | |||||
| Deduct: Beginning inventory of raw materials | 21,000 | 21,000 | |||
| Raw materials to be purchased | |||||
| Cost of raw materials to be purchased | |||||
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The Brain Audit Why Customers Buy And Why They Dont
Authors: Sean D'Souza, John Forde
1st Edition
0473175045, 978-0473175047
