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The table below shows Maori Manufacturings production budget. Each unit of production requires 3 pounds of direct material. The current price of direct materials is
The table below shows Maori Manufacturings production budget. Each unit of production requires 3 pounds of direct material. The current price of direct materials is $5 per pound. Management requires ending inventory of direct material to be 40% of next months requirement. Use the information below to prepare Maori Manufacturings Direct Material Budget for July. (15 points)
Maori Manufacturing | |||
Units to Produce | |||
| June | July | August |
Units to Produce from Production budget | 25,500 | 35,500 | 32,500 |
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