Question
The Svelte Jeans Company produces two different types of jeans. One is called the Simple Life and the other is called the Fancy Life. The
The Svelte Jeans Company produces two different types of jeans. One is called the Simple Life and the other is called the Fancy Life. The Production Budget requires 400,000 units of Simple Life jeans and 300,000 Fancy Life jeans be manufactured. The Simple Life jeans require 3 yards of denim material, a zipper, and 25 yards of thread. The Fancy Life jeans require 4.5 yards of denim material, a zipper, and 40 yards of thread. Each yard of denim material costs $3.25, the zipper costs $.75 each, and the thread is $.01 per yard. There is enough material to make 2,000 jeans of each type at the beginning of the year. The desired amount of materials left in ending inventory is to have enough to manufacture 3,500 jeans of each type. Prepare a Direct Materials Purchases Budget.
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