s has a policy that states that the ending inventory of er chips should be at le

Question

s has a policy that states that the ending inventory of er chips should be at least 25 as follows (Click the icon to view the production schedule.) Requirement Prepare a direct materials budget for the first quarter that shows both the number of computer chips needed and the do Units to be produced Multiply by: Quantity of direct materials needed per unit Quantity needed for production Plus: Desired ending inventory of direct materials Total quantity needed Less: Beginning inventory of direct materials Multiply by Cost per unit Total cost of direct material purchases Enter any number in the edit fields and then continue to the next question OType here to search

Explanation / Answer

January February March Qarter Units to be produced 5000 4500 4900 14400 Mutiple by quantity of direct material Needed per Unit 2 2 2 2 Quantity need for production 10000 9000 9800 28800 Plus Desired ending inventory 2250 2450 2050 2050 Total Quantity Needed 12250 11450 11850 30850 Less Beginning Inventory of Direct Material 2500 2250 2450 2500 Quantity to Pruchase 9750 9200 9400 28350 Multilple by Cost per unit 1 1 1 1 Total cost of Direct Material Purchases 9750 9200 9400 28350

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