Window Help 14% urcourses.uregina.ca 5 t anewered d out of Samano Industrles has

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Window Help 14% urcourses.uregina.ca 5 t anewered d out of Samano Industrles has adopted the following production budget for the four quartors of 2016 ion Quarter 1 Quarter 2 Quarter 3 Quarter4 9,000 10,000 Units 6,000 8,000 Each units requires 4 kg of raw materials costing $6 per kilogram. On December 31, 2015, the ending Inventory of 7,200 kg. Management production requirements in units. The production budget for the first quarter of 2017 wll be 12,000 units Hint- make sure to keep track of Kg and units Use the Information provided to answer the following questions: a) What is the ENDING raw materials inventory in kilograms of material for each quarter? wants to have a raw materials inventory at the beginning of each quarter equal to 30% of th Quarter 1: kilograms Quarter 2: Quarter 3 Quarter 4: Prepare direct materials purchases budget for Quarter 2: b) What are the total kilograms of raw material that are needed for production in Quarter 2? c) What are the total kilograms of raw material that need to be purchased in Quarter 27 d) What is the total cost of the raw materials purchased in Quarter 2? NON 61 26

Explanation / Answer

a) Ending raw material inventory of each quarter :

Quarter 1 = 8000*4*30% = 9600 kilograms

Quarter 2 = 9000*4*30% = 10800 kilograms

Quarter 3 = 10000*4*30% = 12000 kilograms

quarter 4 = 12000*4*30% = 14400 kilograms

b) Total kilogarms of raw material that are needed for production in quarter 2 :

Raw material needed = (8000*4+10800) = 42800 Kg

c) Raw material need to be purchased in quarter 2 : (42800-9600) = 33200 Kg

d) Purchase for quarter 2 = (33200*6) = $199200

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