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.
Chapter7: Budgeting
Section: Chapter Questions
Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...
Related questions
Question
![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
275
August
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
uction of 4,000 units for the year. Selling and administrative expenses are estimated at USD650 per month plus
(USD600 per month) for expected
USDO.60 per unit sold.
Compute the budgeted direct materials purchases in dollars for the month of August.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3381daa3-f7f0-45b8-93f6-acc2a90b4d52%2Fed67b406-f6d1-4195-ba2f-0e02bb7d9139%2Fm1xc4ho_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
275
August
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
uction of 4,000 units for the year. Selling and administrative expenses are estimated at USD650 per month plus
(USD600 per month) for expected
USDO.60 per unit sold.
Compute the budgeted direct materials purchases in dollars for the month of August.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
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
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning