Exercise 5-13 Bonita Auto has developed the following production plan for its ne

Question

Exercise 5-13 Bonita Auto has developed the following production plan for its new auto part. JanuaryFebruary March April -S40-400 14,960-- Budgeted production (units) is146%ofthenext month'sproduction needs, plus Each unit contains 3 pounds of raw material. The desired raw materials ending inventory is 146% ofthe next month's production needs, plus an additional 516 pounds. January's beginning inventory requirements equal 146% of the current month's production needs, plus an additional 516 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

Explanation / Answer

January February March Quarter Budgeted production 10570 8540 9400 28510 Standard pounds per unit 3 3 3 3 Production needs 31710 25620 28200 85530 Budgeted ending inventory 37921 41688 66041 66041 Total DM required (Ibs.) 69631 67308 94241 151571 Beginning inventory 46813 37921 41688 46813 Budgeted purchases (lbs.) 22818 29387 52553 104758

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