Your answer is partially correct. Try again. Dallas Industries has adopted the f

Question

Your answer is partially correct. Try again. Dallas Industries has adopted the following production budget for the first 4 months of 2014. Month Units Month Units January 10,310 March 5,240 February 8,470 April 4,230 Each unit requires 5 pounds of raw materials costing $4 per pound. On December 31, 2013, the ending raw materials inventory was 9,170 pounds. Management wants to have a raw materials 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 first quarter.

Explanation / Answer

Calculation of raw materials required for production

Calculation of purchase of raw material   

Particulars January February March April Budgeted Production in units (a) 10,310 8,470 5,240 4,230 Raw material required per unit (b) 5 pounds 5 pounds 5 pounds 5 pounds Total raw material required (c = a*b) 51,550 42,350 26,200 21,150 Desired Ending raw material inventory (20% of next month' raw material requirement) 8,470 5,240 4,230

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

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