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Sheridan Industries has adopted the following production budget for the first 4 months of 2022. Units Month Units January 8,800 March 4,400 February 7,040 April 3,520 Month Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2021, the ending raw materials inventory was 3,520 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month's production requirements. Prepare a direct materials purchases budget by month for the first quarter.

Sheridan Industries has adopted the following production budget for the first 4 months of 2022. Units Month Units January 8,800 March 4,400 February 7,040 April 3,520 Month Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2021, the ending raw materials inventory was 3,520 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month's production requirements. Prepare a direct materials purchases budget by month for the first quarter.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sheridan Industries has adopted the following production budget for the first 4 months of 2022. Month Units Month Units January 8,800 March 4,400 February 7,040 April 3,520 Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2021, the ending raw materials inventory was 3.520 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month's production requirements. Prepare a direct materials purchases budget by month for the first quarter. Direct Materials Per Unit Direct Labor Time Per Unit Total Required Direct Labor Hours Total Cost of Direct Materials Purchases Units to be Produced Cost Per Pound Direct Labor Cost Per Hour Total Direct Labor Cost Total Materials Required Total Pounds Needed for Production Beginning Direct Materials (Pounds) Desired Ending Direct Materials (Pounds) Direct Materials Purchases SHERIDAN INDUSTRIES Direct Materials Purchases Budget $ $ January February
Transcribed Image Text:Sheridan Industries has adopted the following production budget for the first 4 months of 2022. Month Units Month Units January 8,800 March 4,400 February 7,040 April 3,520 Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2021, the ending raw materials inventory was 3.520 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month's production requirements. Prepare a direct materials purchases budget by month for the first quarter. Direct Materials Per Unit Direct Labor Time Per Unit Total Required Direct Labor Hours Total Cost of Direct Materials Purchases Units to be Produced Cost Per Pound Direct Labor Cost Per Hour Total Direct Labor Cost Total Materials Required Total Pounds Needed for Production Beginning Direct Materials (Pounds) Desired Ending Direct Materials (Pounds) Direct Materials Purchases SHERIDAN INDUSTRIES Direct Materials Purchases Budget $ $ January February
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