Required information Use the following information for the Exercises below. Rulz

Question

Required information Use the following information for the Exercises below. Rulz Co. provides the following sales forecast for the next four months: April May June July 720 670 Sales (units) 640 760 The company wants to end each month with ending finished goods inventory equal to 20% of next month's forecasted sales. Finished goods inventory on April 1 is 128 units. Assume July's budgeted production is 670 units. In addition, each finished unit requires four pounds (Ibs.) of raw materials and the company wants to end each month with raw materials inventory equal to 40% of next month's production needs. Beginning raw materials inventory for April was 1,050 pounds. Assume direct materials cost $5 per pound. Exercise 7-4 Manufacturing: Direct materials budget LO P1 Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) RUIZ CO Direct Materials Budget For April, May, and June April May June Budgeted production (units) Materials requirements per unit Materials needed for production (lbs.) Budgeted ending inventory (Ibs.) Total materials requirements (lbs.) eginning inventory (lbs.) Materials to be purchased (Ibs.) Cost per lb. Total budgeted direct materials cost

Explanation / Answer

RUIZ CO. Production Budget For April, May and June April May June Budgeted Sales Units 640 720 670 (+) Ending inventory (20% of next month's sales) 144 134 152 (760*20%) (-) Begning Inventory 128 144 134 Budgeted Production 656 710 688 RUIZ CO. Direct Materials Budget For April, May and June April May June Budgeted Production (units) 656 710 688 Material requirement per unit 4 4 4 Material needed for production (lbs) 2624 2840 2752 Budgeted ending inventory (40% of next months production) 1136 1100.8 1072 (670*4*40%) Total material requirements (lbs) 3760 3940.8 3824 Begning inventory (lbs) 1050 1136 1100.8 Material to be purchased (lbs) 2710 2804.8 2723.2 Direct material cost per lb 5 5 5 Total budgeted direct material cost 13550 14024 13616

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

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