Exercise 13-5 yayai Industries has adopted the following production budget for t

Question

Exercise 13-5 yayai Industries has adopted the following production budget for the first 4 months of 2017 Month Units Month Units anuary February 10,130 March 8,490 April 5,120 4,380 ending raw materials inventory was 9,180 pounds. Management wants to have a raw materials Each unit requires 5 pounds of raw materials costing $2 per pound. On December 31, 2016, the inventory at the end of the month equal to 20% of next month's production requirements. Prepare a direct materials purchases budget by month for the finst gverter

Explanation / Answer

Direct materials Budget Jan Feb march April Budgeted production (units) 10,130 8,490 5,120 4,380 materials requirement per unit 5 5 5 5 materials needed for production 50650 42450 25600 21900 ending inventory 8490 5120 4380 total material requirements 59140 47570 29980 beginning inventory 9,180 8490 5120 materials to be purchased 49960 39080 24860 materials price per pound 2 2 2 tota budgeted direct materials cost 99920 78160 49720

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.