Answer:
January cost $702,200
February cost $812,200
March cost $950,400
Total Purchase cost
Particulars January February March
Purchase cost of blades $ 207,200.00 $ 227,200.00 $ 230,400.00
Purchase cost of motor $ 495,000.00 $ 585,000.00 $ 720,000.00
$ 702,200.00 $ 812,200.00 $ 950,400.00
Explanation:
R.M budget - blades
Particulars January February March April
Planned production 11000 13000 16000 12000
Blades req. per unit 4 4 4 4
Material req. for prod. 44000 52000 64000 48000
Add: Desired ending inventory 20800 25600 19200 0
Less: Beginning inventory 13000 20800 25600
Net units of blades req. 51800 56800 57600
Cost per blade $ 4.00 $ 4.00 $ 4.00
Purchase cost of blades $ 207,200.00 $ 227,200.00 $ 230,400.00
R.M budget - motor
Particulars January February March April
Planned production 11000 13000 16000 12000
Motor req. per unit 1 1 1 1
Material req. for prod. 11000 13000 16000 12000
Cost per motor $ 45.00 $ 45.00 $ 45.00
Purchase cost of motor $ 495,000.00 $ 585,000.00 $ 720,000.00
