For each unit of finished goods Surf Inc. needs 3 pounds of material. The production budget is shown below for the next 4 months:      Description  Month 1  Month 2  Month 3 Month 4  Production Budget in Units 14,000.00 15,000.00 16,000.00 12,000.00   Prepare the material purchases budget and show the total cost of material to purchase based on the following for Months 1-3

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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 For each unit of finished goods Surf Inc. needs 3 pounds of material.  The production budget is shown
below for the next 4 months:        
         
 Description   Month 1   Month 2   Month 3  Month 4
 Production Budget in Units        14,000.00       15,000.00       16,000.00        12,000.00
         
Prepare the material purchases budget and show the total cost of material to purchase based
on the following for Months 1-3      
         
Beg Inv Month 1         8,800.00 pounds of material  
Cost per pound $4.75      
Required Ending Inventory 12% of next months requirement  
         
 Description   Month 1   Month 2   Month 3   
         
         
         
         
         
         
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