Bridgette Widget Wonderworld has developed inventory budget in units:
Direct Material
Work in process
Finished Goods
April 1 | April 30 | |
Direct Material | 40,000 | 50,000 |
Work in process | 10,000 | 20,000 |
Finished goods | 80,000 | 50,000 |
Three unit of direct material are needed to produce each unit of finished product. IF 350,000 complete units were to be produced in April. how many units of direct material
should be purchased?
Direct Materials Budget | |
Production | 350,000 |
Direct materials per unit | 3 |
Direct materials needed for production | 1,050,000 |
Ending inventory of direct materials | 50,000 |
Total direct materials needed | 1,100,000 |
Beginning inventory of direct materials | -40,000 |
Direct materials purchases | 1,060,000 |
Direct materials purchases for the month of April = 1,060,000 units
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