Electro Company budgets production of 580,000 electric panels in the second quarter and 650,000 electric panels in the third quarter. Each panel requires 0.80 pound of direct material at a cost of $1.50 per pound. The company desires to end each quarter with an ending inventory of this material equal to 20% of next quarter's budgeted materials requirements. Beginning inventory of this material is 92,800 pounds. Prepare a direct materials budget for the second quarter. Units to produce ELECTRO COMPANY Direct Materials Budget Materials needed for production (pounds) Total materials required Materials to purchase (pounds) Cost of direct materials purchases Second Quarter 580,000 units

Electro Company budgets production of 580,000 electric panels in the second quarter and 650,000 electric panels in the third quarter. Each panel requires 0.80 pound of direct material at a cost of $1.50 per pound. The company desires to end each quarter with an ending inventory of this material equal to 20% of next quarter's budgeted materials requirements. Beginning inventory of this material is 92,800 pounds. Prepare a direct materials budget for the second quarter. Units to produce ELECTRO COMPANY Direct Materials Budget Materials needed for production (pounds) Total materials required Materials to purchase (pounds) Cost of direct materials purchases Second Quarter 580,000 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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