Maid-Sweet makes a frozen yogurt dessert. Each frozen yogurt dessert requires 12 ounces of yogurt. The production budget for the first four months of 2012 is as follows: January February. March April Budgeted production 55,000 58,000 62,000 76,000 The company has determined that it must maintain materials inventory equal to 20% of the yogurt needed for the next month's production. Maid-Sweet can purchase yogurt for $0.10 per ounce. On December 31, 2011, there were 80,000 ounces of yogurt in stock. Prepare a budget showing direct materials usage and purchases for the first quarter of 2012 (January, February, and March).
Maid-Sweet makes a frozen yogurt dessert. Each frozen yogurt dessert requires 12 ounces of yogurt. The production budget for the first four months of 2012 is as follows: January February. March April Budgeted production 55,000 58,000 62,000 76,000 The company has determined that it must maintain materials inventory equal to 20% of the yogurt needed for the next month's production. Maid-Sweet can purchase yogurt for $0.10 per ounce. On December 31, 2011, there were 80,000 ounces of yogurt in stock. Prepare a budget showing direct materials usage and purchases for the first quarter of 2012 (January, February, and March).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Maid-Sweet makes a frozen yogurt dessert. Each frozen yogurt dessert requires 12 ounces of yogurt. The production budget for the first four months of 2012 is as
follows:
January
February.
March
April
Budgeted production
55,000
58,000
62,000
76,000
The company has determined that it must maintain materials inventory equal to 20% of the yogurt needed for the next month's production. Maid-Sweet can purchase
yogurt for $0.10 per ounce. On December 31, 2011, there were 80,000 ounces of yogurt in stock. Prepare a budget showing direct materials usage and purchases for
the first quarter of 2012 (January, February, and March).
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