Ramos Company provides the following budgeted production for the next four months. Units to produce April 500 May June July 630 600 600 Each finished unit requires 6 pounds of direct materials. The company wants to end each month with direct materials inventory equal to 25% of next month's production needs. Beginning direct materials inventory for April was 750 pounds. Direct materials cost $3 per pound. Prepare a direct materials budget for April, May, and June. RAMOS COMPANY Direct Materials Budget April Units to produce Materials required per unit Materials needed for production (pounds) Add: Desired ending materials inventory (pounds) Total materials required (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases 500 6 3,000 May June 630 600 units 6 6 pounds 3,780 3,600 pounds 0

Ramos Company provides the following budgeted production for the next four months. Units to produce April 500 May June July 630 600 600 Each finished unit requires 6 pounds of direct materials. The company wants to end each month with direct materials inventory equal to 25% of next month's production needs. Beginning direct materials inventory for April was 750 pounds. Direct materials cost $3 per pound. Prepare a direct materials budget for April, May, and June. RAMOS COMPANY Direct Materials Budget April Units to produce Materials required per unit Materials needed for production (pounds) Add: Desired ending materials inventory (pounds) Total materials required (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases 500 6 3,000 May June 630 600 units 6 6 pounds 3,780 3,600 pounds 0

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...

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