Sunland Furniture Inc. expects to produce 4750 finished goods (FG) units (in tables) in October and 5250 FG units (in tables) in November. Each table needs 2 meters of direct material (DM) in wood that costs $4 (per meter of wood). Target ending DM inventory is 10% of the next month's total production needs in DM (meters of wood). There is DM of 700 meters of wood in inventory on September 30. Total budgeted cost of DM purchases of wood during October will be O $39200. O $39400. O $9850. O $9150.
Sunland Furniture Inc. expects to produce 4750 finished goods (FG) units (in tables) in October and 5250 FG units (in tables) in November. Each table needs 2 meters of direct material (DM) in wood that costs $4 (per meter of wood). Target ending DM inventory is 10% of the next month's total production needs in DM (meters of wood). There is DM of 700 meters of wood in inventory on September 30. Total budgeted cost of DM purchases of wood during October will be O $39200. O $39400. O $9850. O $9150.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
Transcribed Image Text:Sunland Furniture Inc. expects to produce 4750 finished goods (FG) units (in tables) in October and 5250 FG units (in tables) in
November. Each table needs 2 meters of direct material (DM) in wood that costs $4 (per meter of wood). Target ending DM inventory
is 10% of the next month's total production needs in DM (meters of wood). There is DM of 700 meters of wood in inventory on
September 30. Total budgeted cost of DM purchases of wood during October will be
O $39200.
O $39400.
O $9850.
O $9150.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education