Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Rouse Company has prepared a sales budget of 43,000 finished units for a 3-month period. The company has an inventory of 11,000 units

image text in transcribed

The Rouse Company has prepared a sales budget of 43,000 finished units for a 3-month period. The company has an inventory of 11,000 units of finished go on hand at December 31 and has a target finished goods inventory of 12,000 units at the end of the succeeding quarter. It takes 4 gallons of direct materials to make one unit of finished product. The company has inventory of 64,000 gallons of direct materials at December 31 and has a target ending inventory of 55,000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Rouse Company purchase during the 3 months ending March 317 CCO Select the labels and enter the amounts to calculate the direct materials (gallons) to be purchased. Direct Material Purchases Budget For the 3 Months Ending March 31 To be used in production Add target ending inventory 55,000 Total requirements Deduct beginning inventory 64,000 Purchases to be made (in gallons) Clear all Final check

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

Intermediate Accounting

Authors: Earl K. Stice, James D. Stice

18th edition

538479736, 978-1111534783, 1111534780, 978-0538479738

More Books

Students also viewed these Accounting questions

Question

What is management growth? What are its factors

Answered: 1 week ago