The Svelte Jeans Company produces two different types of jeans. One is called th
ID: 2374891 • Letter: T
Question
The Svelte Jeans Company produces two different types of jeans. One is called the %u201CSimple Life%u201D and the other is called the %u201CFancy Life%u201D. The company sales budget estimates that 350,000 of the Simple Life Jeans and 200,000 of the Fancy Life will be sold during 20xx. The Production Budget requires 353,500 units of Simple Life jeans and 196,000 Fancy Life jeans be manufactured. The Simple Life jeans require 3 yards of denim material, a zipper, and 25 yards of thread. The Fancy Life jeans require 4.5 yards of denim material, a zipper, and 40 yards of thread. Each yard of denim material costs $3.25, the zipper costs $.75 each, and the thread is $.01 per yard. There is enough material to make 2,000 jeans of each type at the beginning of the year. The desired amount of materials left in ending inventory is to have enough to manufacture 3,500 jeans of each type.
Prepare a Direct Materials Purchases Budget. If required, round your answers to two decimal please show work.
ANSWER SHOULD BE SET UP IN THIS FORM:
Explanation / Answer
denim zipper thread
units
simple 3 3 2.5
Fancy 4.5 4.5 40
Desired endng inventory
simple 10500 10500 8750
fancy 15750 15750 140000
Total 26250 26250 148750
Less begining
Simple 6000 6000 5000
Fancy 9000 9000 80000
Total amount 11250 11250 63750
to be purchased
unit price 3.25 .75 0.1
total direct 36562.5 8437.5 6375
material to be purchased
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