HOW WAS THE ADD: CLSOING STOCK CALCULATED?
The display cupboards require two direct materials: oak shelving wood and hickory
plywood backing board.
Oak shelving wood:
Thirty (30) feet of 12x1 oak shelving wood are required for each cupboard produced.
Management desires to have materials on hand at the end of each month equal to 10
percent of the following month's cupboard production needs. The beginning
inventory of oak wood, October 2022, was 10,150 feet of wood. Oak wood is
expected to cost $5.00 per foot.
Hickory plywood backing board:
Hickory plywood backing board is purchased by the sheet and 2 backing boards can
be cut from each sheet. Management desires to have plywood on hand at the end of
each month equal to 15 percent of the following month's production needs. The
beginning inventory of plywood, October 2022, was 100 sheets. Hickory plywood is
expected to cost $45 per sheet. (Note, budgeted production in January is required in
order to complete the direct materials budget for December. Also, use the @ROUND
function to round up to the nearest whole number the number of sheets of plywood
to purchase – “DM quantities to purchase”).
QUESTION: HOW WAS THE ADD: CLSOING STOCK CALCULATED?
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The display cupboards require two direct materials: oak shelving wood and hickory
plywood backing board.
Oak shelving wood:
Thirty (30) feet of 12x1 oak shelving wood are required for each cupboard produced.
Management desires to have materials on hand at the end of each month equal to 10
percent of the following month's cupboard production needs. The beginning
inventory of oak wood, October 2022, was 10,150 feet of wood. Oak wood is
expected to cost $5.00 per foot.
Hickory plywood backing board:
Hickory plywood backing board is purchased by the sheet and 2 backing boards can
be cut from each sheet. Management desires to have plywood on hand at the end of
each month equal to 15 percent of the following month's production needs. The
beginning inventory of plywood, October 2022, was 100 sheets. Hickory plywood is
expected to cost $45 per sheet. (Note, budgeted production in January is required in
order to complete the direct materials budget for December. Also, use the @ROUND
function to round up to the nearest whole number the number of sheets of plywood
to purchase – “DM quantities to purchase”).
What are the calculations for this budget?
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