g The following facts are known: • The total pounds needed for production are 2 times the units to be produced. • The desired ending direct materials inventory is 20% of the total pounds needed for production. • The beginning direct materials inventory is equal in number to 10% of the units to be produced. • Cost per pound is $5. • Total cost of the direct materials purchases is $1,035,000. Prepare a direct materials budget for the period.
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Ответ:
Answer and Explanation:
The Preparation of direct material budget is shown below:-
Direct Material budget
Particulars Amount
Units to be produced $90,000 Y
Material per unit 2
Total pounds needed for
production M $180,0002Y
Add: Desired ending Direct
Material Inventory 20% $36,000 (.2 × 2Y = .4Y)
Total Material requirement $216,000 (2.4Y )
Less: beginning Raw material
Inventory $9,000 (.1Y)
Material to be purchased
Account $207,000 (2.3Y)
Cost per pound C $5
Total cost of direct Material
Purchases A $1,035,000
2Y + .4Y - .1Y = $207,000
Y = $207,000 ÷ 2.3 $90,000
Ответ:
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