Question
Waterway Auto has developed the following production plan for its new auto part. January February March April Budgeted production (units) 11,600 8,600 9,960 14,940 Each
Waterway Auto has developed the following production plan for its new auto part.
January | February | March | April | |||||||||
Budgeted production (units) | 11,600 | 8,600 | 9,960 | 14,940 |
Each unit contains 3 pounds of raw material. The desired raw materials ending inventory is 132% of the next months production needs, plus an additional 504 pounds. January's beginning inventory requirements equal 132% of the current month's production needs, plus an additional 504 pounds. Prepare the direct materials purchases budget for the first three months of the coming year. (Round answers to 0 decimal places, e.g. 5,275.)
January | February | March | Quarter | |||||||
Budgeted production | ||||||||||
Standard pounds per unit | ||||||||||
Production needs | ||||||||||
Budgeted ending inventory | ||||||||||
Total DM required (lbs.) | ||||||||||
Beginning inventory | ||||||||||
Budgeted purchases (lbs.) |
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