Preston Incorporated manufacturers wooden shelving units for collecting and sort

Question

Preston Incorporated manufacturers wooden shelving units for collecting and sorting mail. The company expects to produce 250 units in July and 420 units in August....

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G Preston C 21. Ja Home E](90 D?.. ? Search every D ezto.mheducat Most Visited my utrgv.edu ALGEBRA Login NTIN Exam III Instructions help Question 12 (of 35) Sve &Exit; Submit Time remaining: 1:32:58 12. Preston, Inc., manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 250 units in July and 420 units in August. Each unit requires 10 feet of wood at a cost of $1.20 per foot. Preston wants to always have 250 feet of wood on hand in materials inventory Compute Preston's raw materials purchases budget for July and August July August Budgeted Raw Materials Purchases Macro II Sc2 1080 30 29... Chapter 10 test bank_o Study Notes

Explanation / Answer

Calculation of Purchase budget for the month of July and August Units July August Production Budget Units 250 420 Each unit is required 10 feet of wood = Feet 10 10 Direct Material required for production(a) Feet 2500 4200 Add: Planned ending balance of Wood (b) Feet 250 250 Total material required for Production (a+b) Feet 2750 4450 Less: Opening balance of Wood Feet 0 250 Units to Be Purchased Feet 2750 4200 Answer = Budgeted Raw materials purchases Feet 2750 4200

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