Killingsworth Publishers Inc. budgeted production of 57,000 diaries in 2016. Paper is required to produce a diary. Assume 108 square yards of paper are required for each diary. The estimated January 1, 2016, paper inventory is 369,000 square yards. The desired December 31, 2016, paper inventory is 339,000 square yards. If paper costs dollar 0.12 per square yard, determine the direct materials purchases budget for 2016.

Killingsworth Publishers Inc. budgeted production of 57,000 diaries in 2016. Paper is required to produce a diary. Assume 108 square yards of paper are required for each diary. The estimated January 1, 2016, paper inventory is 369,000 square yards. The desired December 31, 2016, paper inventory is 339,000 square yards. If paper costs dollar 0.12 per square yard, determine the direct materials purchases budget for 2016.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 45BEB: Pilsner Inc. purchases raw materials on account for use in production. The direct materials...

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