Safety Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget: Units to be produced October 5000 November 5650 December 5220 Safety Works sells each whistle for $14. It takes 2 ounces of metal to produce each whistle at a cost of $.80 per ounce. They prefer to have 10% of materials required for the following month's production in ending inventory as
Safety Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget: Units to be produced October 5000 November 5650 December 5220 Safety Works sells each whistle for $14. It takes 2 ounces of metal to produce each whistle at a cost of $.80 per ounce. They prefer to have 10% of materials required for the following month's production in ending inventory as
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Safety Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget:
| Units to be produced | |
| October | 5000 |
| November | 5650 |
| December | 5220 |
Safety Works sells each whistle for $14. It takes 2 ounces of metal to produce each whistle at a cost of $.80 per ounce. They prefer to have 10% of materials required for the following month's production in ending inventory as well. What is the total cost of direct materials for October to meet production needs? (Round the final answer to the nearest dollar.)
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Total cost of direct materials for October = 90% of October months production + 10% of November months production
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