eBook Direct Materials Purchases Budget Langer Company produces plastic items, i
ID: 2594586 • Letter: E
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eBook Direct Materials Purchases Budget Langer Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 15 ounces of plastic costing $0.14 Calculator per ounce. Langer molds the plastic into the proper shape. Langer has budgeted production of the housings for the next 4 months as follows Units 3,500 4,400 4,900 6,300 July August September October Inventory policy requires that sufficient plastic be in ending monthly inventory of plastic at the beginning of July equals exactiy the amount needed to sotisfy the inventory pollcy Required Prepare a direct materials purchases budget for July, August, and September inventory to satisfy 30% of the following month's production needs. The howing purchases in units and in dotlars for each month and in total. If required, round the total purchase cost to nearest whole v alue. Langer Company Direct Materials Purchases Budget For July August and September Buly August Septeimber Total Units to be produced Direct materlais per unt (ounces) Check My Work Previous NextExplanation / Answer
Langer Company
Langer Company
Direct Materials Purchases Budget For July, August, and September July August September Total Units to be produced 3,500 4,400 4,900 12,800 Direct materials per unit (ounces) 15 15 15 15 Production needs 52,500 66,000 73,500 192,000 Desired ending inventory (ounces)-30% of next month 19,800 22,050 28,350 28,350 6300*15*0.3 = 28350 Total needs 72,300 88,050 101,850 220,350 Less: Beginning inventory-30% of prod needs 15,750 19,800 22,050 15,750 Direct materials to be purchased (ounces) 56,550 68,250 79,800 204,600 Cost per ounce $0.14 $0.14 $0.14 $0.14 Total purchase cost $7,917 $9,555 $11,172 $28,644Related Questions
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