Dewitt Industries has adopted the following production budget for the first 4 months of 2012.?

Question

Dewitt Industries has adopted the following production budget for the first 4 months of 2012. Month Units Month Units January 10,320 March 5,320 February 8,370 April 4,220 Each unit requires 4 pounds of raw materials costing $2 per pound. On December 31, 2011, the ending raw materials inventory was 9,490 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month's production requirements. Complete a direct materials purchases budget by month for the first quarter.

Prof. Clark Walter · Accepted Answer

January Units to be produced 10,320x Direct materials per unit 4Total pounds needed for production 41,280+ desired ending direct materials 6,696 (33,480 x 20%)Total materials required 47,976- Beginning Direct materials 9,490Direct material purchases 38,486Cost per pounds $2Total cost of direct material purchases $76,972February:Units to be produced 8,370x Direct materials per unit 4Total pounds needed for production 33,480+ desired ending direct materials 4,256 (21,280 x 20%)Total materials required 37,736- Beginning Direct materials 6,696Direct material purchases 31,040Cost per pounds $2Total cost of direct material purchases $62,080March:Units to be produced 5,320x Direct materials per unit 4Total pounds needed for production 21,280+ desired ending direct materials 3,376 (4,220 x 4 x20%)Total materials required 24,656- Beginning Direct materials 4,256Direct material purchases 20,400Cost per pounds $2Total cost of direct material purchases $40,800

Alycia Zemlak

Dewitt Industries has adopted the following production budget for the first 4 months of 2012.?

1 Answers

AI-Powered Insights

Want to answer this question?

Categories

Tags

Related Questions