You are provided with the following information for Keon Company You are asked to assist in the budget setting process Production budget for January, February and March 2,000 units per month Production budget for April, May and June (and July) 1,800 units per month Production standard direct material 4 5 kilograms per unit Direct material inventory standard percentage of closing inventory to next month's production 70 DM required for current month Direct material standard cost $25 00 per kilogram Direct material purchase paid in month of purchase 40 of total purchase amount Direct material purchase paid in following month 60 of total purchase amount Direct material purchases in December 8,000 kilograms Expected 31 December inventory 10,000 kilograms Required (a) Prepare the direct materials purchase budget in kilograms of material for January to June for Keon Company Ignore non round amounts and simply show the nearest whole number for all values (b) Prepare the direct materials payment budget for January to June Ignore non round amounts and simply show the nearest whole number for all values

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Posted on Sep 10, 2024

You are provided with the following information for Keon Company. You are asked to assist in the budget-setting process. Production budget for January, February and

You are provided with the following information for Keon Company. You are asked to assist in the budget-setting process.

Production budget for January, February and March	2,000	units per month
Production budget for April, May and June (and July)	1,800	units per month
Production standard direct material	4.5	kilograms per unit
Direct material inventory standard percentage of closing inventory to next month's production	70%	DM required for current month
Direct material standard cost	$25.00	per kilogram
Direct material purchase paid in month of purchase	40%	of total purchase amount
Direct material purchase paid in following month	60%	of total purchase amount
Direct material purchases in December	8,000	kilograms
Expected 31 December inventory	10,000	kilograms

Required

(a) Prepare the direct materials purchase budget in kilograms of material for January to June for Keon Company. Ignore non-round amounts and simply show the nearest whole number for all values.

(b) Prepare the direct materials payment budget for January to June. Ignore non-round amounts and simply show the nearest whole number for all values.