Beckett Industries manufactures a popular interactive stuffed animal for children that requires two computer chips inside each toy. The company pays $3 for each computer chip. To help to guard againstockouts of the computer chip, Beckett Industries has a policy that states that the ending inventory of computer chips should be at least 30% of the following month's production needs. Th schedule for first months of the year is as follows: (Click the icon to view the production schedule) Requirement Prepare a direct materials budget for the first quarter that shows both the number of computer chips needed and the dollar amount of the purchases in the budget Prepare the direct materials budget by first calculating the total quantity needed, then complete the budget Beckett Industries Direct Materials Budget For the Months of January through March Units to be produced Multiply by. Quantity of direct materials needed per unit Quantity needed for production CHED Plus: Desired ending inventory of direct materials Total quantity needed Less: Beginning inventory of direct materials Quantity to purchase January February March Quarter
Beckett Industries manufactures a popular interactive stuffed animal for children that requires two computer chips inside each toy. The company pays $3 for each computer chip. To help to guard againstockouts of the computer chip, Beckett Industries has a policy that states that the ending inventory of computer chips should be at least 30% of the following month's production needs. Th schedule for first months of the year is as follows: (Click the icon to view the production schedule) Requirement Prepare a direct materials budget for the first quarter that shows both the number of computer chips needed and the dollar amount of the purchases in the budget Prepare the direct materials budget by first calculating the total quantity needed, then complete the budget Beckett Industries Direct Materials Budget For the Months of January through March Units to be produced Multiply by. Quantity of direct materials needed per unit Quantity needed for production CHED Plus: Desired ending inventory of direct materials Total quantity needed Less: Beginning inventory of direct materials Quantity to purchase January February March Quarter
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
please answer complete and correct with working and steps please answer in image not text
Transcribed Image Text:Data table
January
February
March
April
...
...
....
.....
Stuffed animals to be produced
5,700
4,500
4,900
4,100
-
X
Transcribed Image Text:Beckett Industries manufactures a popular interactive stuffed animal for children that requires two computer chips inside each toy. The company pays $3 for each computer chip. To help to guard
against stockouts of the computer chip, Beckett Industries has a policy that states that the ending inventory of computer chips should be at least 30% of the following month's production needs. The
production schedule for the first four months of the year is as follows:
(Click the icon to view the production schedule.)
Requirement
Prepare a direct materials budget for the first quarter that shows both the number of computer chips needed and the dollar amount of the purchases in the budget.
Prepare the direct materials budget by first calculating the total quantity needed, then complete the budget
Beckett Industries
Direct Materials Budget
For the Months of January through March
January
Units to be produced
Multiply by: Quantity of direct materials needed per unit
Quantity needed for production
Plus: Desired ending inventory of direct materials
Total quantity needed
GREED
Less: Beginning inventory of direct materials
Quantity to purchase
Multiply by: Cost per unit
Total cost of direct material purchases
February March
Quarter
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