Question

Sleep master, inc. manufactures bedding sets. the budgeted production is for 57,000 comforters in 2013. each comforter requires 6 yards of material. the estimated january 1, 2013, beginning inventory is 31,000 yards. the desired ending balance is 27,000 yards of material. if the material costs $1.50 per yard, determine the materials budget for 2013.

Answer 1

Answer:

Total Material cost = $507,000

Explanation:

Material budget shows the total budgeted material cost for a specific period.

               Sleep master, inc.

          Direct Material Budget

            December 31, 2013

Budgeted production units                57,000

yards required per comforter                   × 6

Materials needed for production = 342,000 yards

Add: Ending Material Inventory   =  27,000   yards

Total Material units required       = 369,000 yards

Less: Beginning Materials            = (31,000)  yards

Material used                                = 338,000 yards

Cost per yard                                         × $1.50

Total Material cost                       = $507,000