Brown Inc. Production budget for Product X for the year ended December 31 is as
ID: 2447719 • Letter: B
Question
Brown Inc. Production budget for Product X for the year ended December 31 is as follows
Product X
Sales 640,000
Plus desired ending inv 85,000
total 725,000
less estimated beg inv Jan 1 90,000
Total Production 635,000
In Brown's production operations, Materials A, B, and C are required to make Product X. The quantities of the direct materials expected to be used for each unit of product are as follows.
Product X
Material A .50 pound per unit
Material B 1.00 pound per unit
Material C 1.20 pound per unit
The prices of direct materials are as follows:
Material A $0.60 per pound
Material B 1.70 per pound
Material C 1.00 per pound
prepare a direct materials purchases budget for Product X, assuming that there are no beginning or ending inventories for direct ( all units purchased are used in production).
Need to know how you got the answers as wll.
sales
Explanation / Answer
Total Production = 635000
Total Material A used in production = 635000 x 0.5 = 317500 pounds
Total Cost of Material A purchased = 317500 x 0.6 = $190500
Total Material B used in production = 635000 x 1 = 635000 pounds
Total Cost of Material B purchased = 635000 x 1.7 = $1079500
Total Material C used in production = 635000 x 1.2 = 762000 pounds
Total Cost of Material C purchased = 762000 x 1 = $762000
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