Question

Sleep Master, Inc. manufactures bedding sets. The budgeted production is for 57,000 comforters in 2017. Each comforter requires 6 yards of material. The estimated January 1, 2017, 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 201

Answer 1

Answer:

Total cost= $507,000

Explanation:

Giving the following information:

The budgeted production is for 57,000 comforters in 2017. Each comforter requires 6 yards of material. The estimated January 1, 2017, 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 201.

Material budget:

Production= 57,000*6= 342,000 yards

Ending inventory= 27,000

Beginning inventory= (31,000)

Total= 338,000

Total cost= 338,000*1.5= $507,000