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Tangshang Industries production budget from the 2nd quarter of 2018, projected the following amounts of units...

Tangshang Industries production budget from the 2nd quarter of 2018, projected the following amounts of units to be produced:

April 1,000 units

May     1,200 units

June     1,250 units

Each unit requires 2 parts of component A and 3 parts of component B. Component A cost is $1.25 per unit and component B cost is $.80 per unit.

Calculate the Direct Material budgeted cost for May 2018

Calculate the Direct Material budgeted cost for the quarter April - June 2018

The raw materials inventory policy is 0 ending inventory, 0 beginning inventory. How much inventory of component A is required in April 2018?

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Answer #1

a)Direct Material budgeted cost for May 2018 =( unit produced for may * component A*cost )+(unit produced for may * component A*cost ))

(1200 * 2 *1.25)+(1200*3*.80)

3000+ 2880

5880

b)Total unit produced = 1000+1200+1250=3450

Direct Material budgeted cost for the quarter April - June 2018 =[3450*2*1.25]+[3450*3*.80]

    = 8625+ 8280

    = $ 16905

c)inventory of component A is required in April 2018 =Unit produced in april *requirement

      = 1000*2

      = 2000 components

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