Jason Manufacturing has the following information: Expected units to produce in March3,900 unitsExpected units to produce in April4,900unitsBudgeted direct materials cost per yard$30Budgeted direct materials needed per unit3 yardsRaw Materials Inventory balance on March 1 (all direct materials)600 yardsDesired ending balance in Raw Materials Inventory at the end of each month24% of next month's direct materials needed for productionThe amount of indirect materials needed for production has been determined to be insignificant and will therefore not be considered in the calculation. What is the cost of the budgeted purchases of direct materials needed for March?

Solution: yards of direct materials needed for March = March production needs + desired ending…

Answered: Expected units to produce in March…

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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Jason Manufacturing has the following information:

Expected units to produce in March	3,900 units
Expected units to produce in April	4,900units
Budgeted direct materials cost per yard	$30
Budgeted direct materials needed per unit	3 yards
Raw Materials Inventory balance on March 1 (all direct materials)	600 yards
Desired ending balance in Raw Materials Inventory at the end of each month	24% of next month's direct materials needed for production

The amount of indirect materials needed for production has been determined to be insignificant and will therefore not be considered in the calculation. What is the cost of the budgeted purchases of direct materials needed for March?

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