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ololo11 [35]
3 years ago
8

The direct materials budget shows: Desired ending direct materials 48,000 pounds Total materials required 69,000 pounds Direct m

aterials purchases 63,200 pounds The total direct materials needed for production is a. 21,000 pounds. b. 5,800 pounds. c. 15,200 pounds. d. 132,200 pounds.
Business
1 answer:
SIZIF [17.4K]3 years ago
3 0

Answer:

The total direct materials required for production are 21000 pounds. Thus, option a. 21000 pounds is the correct option.

Explanation:

The direct materials required value of 69000 pounds includes the direct materials that are required to meet this month's production requirement along with catering for the desired ending inventory of 48000 pounds. The value of total direct material required is adjusted for any kind of opening inventory and is the actual requirement for this period. Thus, the total direct materials that are needed for production for this period are,

Production requirement-Direct material = Total direct material required - desired level of closing inventory

Production requirement-Direct Material = 69000 - 48000  =  21000 pounds

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6 0
1 year ago
Using the following information, what is the amount of net income? Purchases $ 33,114 Selling expenses $ 677 Merchandise invento
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The net income is $32,961

<u>Explanation</u>:

To calculate the net income, we will classify the transaction into income and expenses, and compute the difference between their totals;

Income;

Merchandise inventory Sept. 1     =  $  7,740

Merchandise inventory Sept. 30  = $ 11,372

                                         Sales     =  $ 50,575

                                        Total      =  $ 69,687

Expenses;

Purchases                             = $ 33,114

Selling expenses                  = $     677

Administrative expense       = $     665

Rent Revenue                       = $    1,118

Interest expense                  = $     1,152

Total                                      = $  36,726

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