Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Wehner Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 19 ounces of plastic costing $0.14 per ounce. Wehner molds
Wehner Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 19 ounces of plastic costing $0.14 per ounce. Wehner molds the plastic into the proper shape. The company has budgeted production of the housings for the next 4 months as follows: Units September October November December 3,500 4,400 4,800 7,100 Inventory policy requires that sufficient plastic be in ending monthly inventory to satisfy 30% of the following month's production needs. The inventory of plastic at the beginning of July equals exactly the amount needed to satisfy the inventory policy. Prepare a direct materials purchases budget for September, October, and November, showing purchases in units and in dollars for each month and in total. If required, round the total purchase cost to nearest whole value. Wehner Company Direct Materials Purchases Budget For September, October, and November Line Item Description September October November Total Units to be produced 3,500 4,400 4,800 Direct materials per unit (ounces) 19 19 19 Production needs Desired ending inventory (ounces) Total needs Less: Beginning inventory Direct materials to be purchased (ounces) x X X Cost per ounce $0.14 $0.14 $0.14 $0.14 Total purchase cost $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started