Answer:
Material Purchase Budget:
Material A: $1,170,000
Material B: $702,000
Explanation:
Material purchase budget = Material usage budget × standard price
Material usage budget = Production budget ×standard usage
Production budget = sales + closing inventory - opening inventory
Production budget = 76,000 + 10,500 - 8,500= 78,000
Material purchase budget = Material usage budget × standard price
Material Purchase Budget:
Material A: 3 × 78,000 × $5= $1,170,000
Material B: 0.5 × 78,000
× $18= $702,000
