Answer:
total budgeted direct materials = $24,750
Explanation:
production budget x materials needed:
April = 21,000 x 0.5 lbs = 10,500 pounds
May = 22,000 x 0.5 lbs = 11,000 pounds
June = 24,000 x 0.5 lbs = 12,000 pounds
- beginning inventory = 11,000 x 25% = 2,750 lbs
- production requirements = 11,000 lbs
- ending inventory = 12,000 x 25% = 3,000 lbs
<u>direct materials budget May:</u>
budgeted production 22,000 units
materials per unit 0.5 lbs
materials needed for production 11,000 lbs
budgeted ending inventory 3,000 lbs
budgeted beginning inventory 2,750 lbs.
materials to be purchased 11,000 + 3,000 - 2,750 = 11,250 lbs
price per pound $2.20
total budgeted direct materials $24,750
