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Xavier Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use 3 6 skeins of wool at
Xavier Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use skeins of wool at a cost of $ per skein and gallons of dye at a cost of $ per gallon. All other materials are indirect. At the beginning of the year Xavier has an inventory of skeins of wool at a cost of $ and gallons of dye at a cost of $ Target ending inventory of wool and dye is zero. Xavier uses the FIFO inventory cost flow method.
Requirement Prepare a direct material usage budget in both units and dollars.
Begin with the physical units portion, then prepare the cost budget portion of the direct material usage budget Direct Material Usage Budget in Quantity and Dollars
Material
Wool
Dye
Total
Physical Units Budget
Direct materials required for
Blue rugs
Cost Budget skeins
Available from beginning direct materials inventory
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