Answer:
$584,821
Explanation:
This can be calculated using the following simple equation:
Budgeted yards of material = Desired ending balance + Materials required – Beginning material
Material required = 17,700 × 7 = 123,900 yards
Budgeted yards of material = 5,400 + 123,900 – 4,870 = 124,430
Materials budget for the year = Budgeted yards of material × Material costs per yard
= 124,430 × $4.70
Materials budget for the year = $584,821
Therefore, Magnolia, Inc. materials budget for the year is $584,821.