DeWitt Industries has adopted the following production budget for the first 4 months of Month Units Month January 10,000 March February 8,000 April 4,000 Units 5,000 Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2019, the ending raw materials inventory was 4,000 pounds. Management war have a raw materials inventory at the end of the month equal to 20% of next month's production requirements. Prepare a direct materials purchases budget by month for the first quarter.

DeWitt Industries has adopted the following production budget for the first 4 months of Month Units Month January 10,000 March February 8,000 April 4,000 Units 5,000 Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2019, the ending raw materials inventory was 4,000 pounds. Management war have a raw materials inventory at the end of the month equal to 20% of next month's production requirements. Prepare a direct materials purchases budget by month for the first quarter.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 5EA: Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700...

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The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is 25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units. Prepare the following: a. A sales budget for June. b. A production budget for June.
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