Fuqua Chandler Company\'s sales budget projects unit sales of part 198Z of 10,30
ID: 2371767 • Letter: F
Question
Fuqua Chandler Company's sales budget projects unit sales of part 198Z of 10,300 units in January, 12,100 units in February, and 13,000 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $3 per pound. Fuqua Chandler Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 25% of the next month's expected unit sales. These goals were met at December 31, 2011.Complete the direct materials budget for January 2012.
Fuqua Chandler Company's sales budget projects unit sales of part 198Z of 10,300 units in January, 12,100 units in February, and 13,000 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $3 per pound. Fuqua Chandler Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 25% of the next month's expected unit sales. These goals were met at December 31, 2011.
Fuqua Chandler Company's sales budget projects unit sales of part 198Z of 10,300 units in January, 12,100 units in February, and 13,000 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $3 per pound. Fuqua Chandler Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 25% of the next month's expected unit sales. These goals were met at December 31, 2011.
Complete the direct materials budget for January 2012.
Fuqua Chandler Company's sales budget projects unit sales of part 198Z of 10,300 units in January, 12,100 units in February, and 13,000 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $3 per pound. Fuqua Chandler Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 25% of the next month's expected unit sales. These goals were met at December 31, 2011.
Complete the direct materials budget for January 2012.
Explanation / Answer
Is there a different calculation for the desired pounds (7,392), total materials reuired (51,432), begining direct materials (6,606) and direct materials purchased (44,826) and (134,478) because it does not add to the final answer. The cost per pound is correct.
Add: Desired Pounds in Ending Direct Materials Inventory 7,392 Total Materials Required 51,432 Less: Beginning Direct Materials (Pounds) 6,606 Direct Materials Purchases 44,826 Cost per Pound $3 Total Cost of Direct Materials Purchases $134,478Related Questions
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