On the Direct Materials Budget, the total number of direct materials needed is c

Question

On the Direct Materials Budget, the total number of direct materials needed is computed as: Quantity needed for production + desired ending inventory of DM - beginning inventory of DM Units to be produced + desired ending inventory of DM - beginning inventory of DM Quantity needed for production - desired ending inventory of DM + beginning inventory of DM Units to be produced - desired ending inventory of DM + beginning inventory of DM Loyal Pet Company expects to sell 5.000 dog treats m January, and 9.000 treats in February for dollar 3 each. What would be the total Sales Revenue reflected in the Sales Budget for those months? January dollar 27,000; February dollar 15.000 January dollar 15,000. February dollar 27.000 January dollar 3,000; February dollar 1.667 January dollar 1.667; February dollar 3,000

Explanation / Answer

1. option A is correct.

direct materials utilisation for a period= produced goods- ending inventory + closing inventory

2. january sales revenue= 5000*$3= $15,000 and february sales= 9000*$3= $27,000

option B is correct

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