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Marcy Jones, Marigold & Hill Fabricators' purchasing manager, has just received the company's production budget for the first quarter.
January |
February |
March |
Quarter |
|||||||
---|---|---|---|---|---|---|---|---|---|---|
Budgeted Production |
16,925 |
31,455 |
27,913 |
76,293 |
Budgeted sales of April is 23,780 and its beginning inventory is
3,805. May month budgeted sales is 18,860. Company policy requires
an ending finished goods inventory each month that will meet 16% of
the following month’s sales volume.
Each brick requires 4.00 pounds of clay, and Marcy expects to pay
$0.33 per pound of clay in the coming year. Company policy requires
an ending direct materials inventory each month that will meet 8%
of the following month's production needs. Marcy expects to have
15,498 pounds of clay at a cost of $6,199 in inventory at the
beginning of the year.
Prepare Marigold & Hill's direct materials purchases budget for
the first quarter. (Round answers to 0 decimal places,
e.g. 5,275 and enter price per pound to 2 decimal places, e.g.
52.75.)
January | February | March | Quarter | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Select an opening direct materials purchases budget itemSelect an opening direct materials purchases budget item Budgeted ending inventoryBudgeted productionStandard cost per poundBudgeted purchases (lbs.)Total DM required (lbs.)Standard pounds per unitBeginning inventoryBudgeted purchases costProduction needs | Enter a number of unitsEnter a number of units | Enter a number of unitsEnter a number of units | Enter a number of unitsEnter a number of units | Enter a number of unitsEnter a number of units | ||||||
Select an itemSelect an item Standard cost per poundBeginning inventoryBudgeted ending inventoryBudgeted purchases costBudgeted productionTotal DM required (lbs.)Standard pounds per unitBudgeted purchases (lbs.)Production needs | Enter an amount of pounds per unitEnter an amount of pounds per unit | Enter an amount of pounds per unitEnter an amount of pounds per unit | Enter an amount of pounds per unitEnter an amount of pounds per unit | Enter an amount of pounds per unitEnter an amount of pounds per unit | ||||||
select a summarizing line for the first partselect a summarizing line for the first part Budgeted ending inventoryStandard cost per poundProduction needsBudgeted purchases (lbs.)Budgeted productionBudgeted purchases costBeginning inventoryStandard pounds per unitTotal DM required (lbs.) | enter a total amount of pounds for the first partenter a total amount of pounds for the first part | enter a total amount of pounds for the first partenter a total amount of pounds for the first part | enter a total amount of pounds for the first partenter a total amount of pounds for the first part | enter a total amount of pounds for the first partenter a total amount of pounds for the first part | ||||||
Select an itemSelect an item Standard cost per poundTotal DM required (lbs.)Budgeted productionBudgeted purchases (lbs.)Budgeted purchases costBeginning inventoryStandard pounds per unitBudgeted ending inventoryProduction needs | enter an amount of poundsenter an amount of pounds | enter an amount of poundsenter an amount of pounds | enter an amount of poundsenter an amount of pounds | enter an amount of poundsenter an amount of pounds | ||||||
Select a summarizing line for the second partSelect a summarizing line for the second part Standard pounds per unitStandard cost per poundBudgeted productionProduction needsTotal DM required (lbs.)Budgeted purchases (lbs.)Budgeted ending inventoryBeginning inventoryBudgeted purchases cost | Enter a total amount of pounds for the second partEnter a total amount of pounds for the second part | Enter a total amount of pounds for the second partEnter a total amount of pounds for the second part | Enter a total amount of pounds for the second partEnter a total amount of pounds for the second part | Enter a total amount of pounds for the second partEnter a total amount of pounds for the second part | ||||||
Select an itemSelect an item Budgeted purchases costStandard pounds per unitTotal DM required (lbs.)Budgeted purchases (lbs.)Budgeted productionStandard cost per poundBeginning inventoryBudgeted ending inventoryProduction needs | Enter an amount of poundsEnter an amount of pounds | Enter an amount of poundsEnter an amount of pounds | Enter an amount of poundsEnter an amount of pounds | Enter an amount of poundsEnter an amount of pounds | ||||||
Select a summarizing line for the third partSelect a summarizing line for the third part Budgeted ending inventoryProduction needsBudgeted purchases costBudgeted purchases (lbs.)Budgeted productionTotal DM required (lbs.)Standard cost per poundStandard pounds per unitBeginning inventory | Enter a total amount of pounds for the third partEnter a total amount of pounds for the third part | Enter a total amount of pounds for the third partEnter a total amount of pounds for the third part | Enter a total amount of pounds for the third partEnter a total amount of pounds for the third part | Enter a total amount of pounds for the third partEnter a total amount of pounds for the third part | ||||||
Select an itemSelect an item Beginning inventoryProduction needsStandard pounds per unitStandard cost per poundBudgeted productionBudgeted ending inventoryTotal DM required (lbs.)Budgeted purchases costBudgeted purchases (lbs.) | Enter a dollar amountEnter a dollar amount | Enter a dollar amountEnter a dollar amount | Enter a dollar amountEnter a dollar amount | Enter a dollar amountEnter a dollar amount | ||||||
Select a closing direct materials purchases budget itemSelect a closing direct materials purchases budget item Production needsStandard cost per poundBudgeted purchases (lbs.)Total DM required (lbs.)Budgeted purchases costBeginning inventoryBudgeted productionBudgeted ending inventoryStandard pounds per unit | Enter a total amount for the direct materials purchases budgetEnter a total amount for the direct materials purchases budget | Enter a total amount for the direct materials purchases budgetEnter a total amount for the direct materials purchases budget | Enter a total amount for the direct materials purchases budgetEnter a total amount for the direct materials purchases budget | Enter a total amount for the direct materials purchases budgetEnter a total amount for the direct materials purchases budget |
Direct material purchase Budget
January | February | March | Quarter | |
Production units | 16925 | 31455 | 27913 | 76293 |
Standard pound per unit | 4 | 4 | 4 | 4 |
Material needed for production | 67700 | 125820 | 111652 | 305172 |
Add: Desired ending inventory | 10066 | 8932 | 7358 | 7358 |
Total | 77766 | 134752 | 119010 | 312530 |
Less: Beginning inventory | -15498 | -10066 | -8932 | -15498 |
Raw material purchase | 62268 | 124686 | 110078 | 297032 |
Cost per pound | 0.33 | 0.33 | 0.33 | 0.33 |
Direct material purchase cost | 20548 | 41146 | 36326 | 98020 |
April production = 18860*16%+23780-3805 = 22993*4*8% = 7358
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