Sacco Industries manufactures a popular interactive stuffed animal for children that requires three computer chips inside each toy. The company pays $2 for each computer chip. To help to guard against stockouts of the computer chip, Sacco Industries has a policy that states that the ending inventory of computer chips should be at least 25% of the following month's production needs. The production schedule for the first four months of the year is as follows: E (Click the icon to view the production schedule.) Requirement Prepare a direct materials budget for the first quarter that shows both the number of computer chips needed and the dollar amount of the purchases in the budget. Prepare the direct materials budget by first calculating the total quantity needed, then complete the budget. Sacco Industries Direct Materials Budget For the Months of January through March - X Data table January February March Quarter Units to be produced 5,600 4,800 4,200 14,600 3 3 3 Multiply by: Quantity of direct materials needed per unit Stuffed animals to be produced Quantity needed for production 16,800 14,400 12,600 43,800 January..... 5,600 3,600 3,150 3,000 3,000 Plus: Desired ending inventory of direct materials February .... 4,800 Total quantity needed 20,400 17,550 15,600 46,800 March...... 4,200 Less: Beginning inventory of direct materials April. 4,000 Quantity to purchase Multiply by: Cost per unit Total cost of direct material purchases Print Done

Name: Sacco Industries manufactures a popular interactive stuffed animal fo
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Sacco Industries manufactures a popular interactive stuffed animal for children that requires three computer chips inside each toy. The company pays $2 for each computer chip. To help to guard against stockouts of the computer chip, Sacco Industries