Given the following information from Rowdy Enterprises’ direct materials budget, how much direct materials needs to be purchased? Round to the nearest dollar, no decimal places. Beginning materials inventory $71,182 Ending materials inventory 76,378 Materials needed for production 415,458
Given the following information from Rowdy Enterprises’ direct materials budget, how much direct materials needs to be purchased? Round to the nearest dollar, no decimal places. Beginning materials inventory $71,182 Ending materials inventory 76,378 Materials needed for production 415,458
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Given the following information from Rowdy Enterprises’ direct materials budget, how much direct materials needs to be purchased? Round to the nearest dollar, no decimal places.
- Beginning materials inventory $71,182
- Ending materials inventory 76,378
- Materials needed for production 415,458
Expert Solution
Step 1
The amount of direct material purchases should fulfill the production requirements as well as the ending inventory requirements.
Beginning inventory will reduce the requirement as it will be used during this period.
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