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iren2701 [21]
3 years ago
14

Zortek Corp. budgets production of 380 units in January and 270 units in February. Each finished unit requires four pounds of ra

w material Z, which costs $3 per pound. Each month’s ending inventory of raw materials should be 50% of the following month’s budgeted production. The January 1 raw materials inventory has 190 pounds of Z. Prepare a direct materials budget for January.
Business
1 answer:
SOVA2 [1]3 years ago
3 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Zortek Corp. budgets production of 380 units in January and 270 units in February. Each finished unit requires four pounds of raw material Z, which costs $3 per pound. Each month’s ending inventory of raw materials should be 50% of the following month’s budgeted production. The January 1 raw materials inventory has 190 pounds of Z.

Prouction January= 380 units*4 pounds= 1520 punds

Production Febreaury= (270*4pounds)/2= 540 pounds

Initial inventory= 190 pounds (-)

Purchase= 1870 pounds

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