TRIUMPHANT Company manufactures wood chairs that sell for USD25 each. Each chair requires 4 linear feet of wood, which costs USD2.00 per foot. Each chair takes approximately 30 minutes to build, and the labor rate averages USD12.00 per hour. TRIUMPHANT has the following inventory policies: Ending finished goods inventory should be 40 percent of next month's sales. Ending direct materials inventory should be 30 percent of next month's production. Expected unit sales (chair) for the upcoming months follow: June 225 July August 275 350 September 400 October 375 November 425 Variable manufacturing overhead is incurred at a rate of USDO,30 per unit produced. Annual fixed manufacturing overhead is estimated to be USD7,200 (USD600 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at USD650 per month plus USDO.60 per unit sold. Compute the budgeted direct materials purchases in dollars for the month of August.

TRIUMPHANT Company manufactures wood chairs that sell for USD25 each. Each chair requires 4 linear feet of wood, which costs USD2.00 per foot. Each chair takes approximately 30 minutes to build, and the labor rate averages USD12.00 per hour. TRIUMPHANT has the following inventory policies: Ending finished goods inventory should be 40 percent of next month's sales. Ending direct materials inventory should be 30 percent of next month's production. Expected unit sales (chair) for the upcoming months follow: June 225 July August 275 350 September 400 October 375 November 425 Variable manufacturing overhead is incurred at a rate of USDO,30 per unit produced. Annual fixed manufacturing overhead is estimated to be USD7,200 (USD600 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at USD650 per month plus USDO.60 per unit sold. Compute the budgeted direct materials purchases in dollars for the month of August.

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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