Zortek Corporation budgets production of 440 units in January and 340 units in February. Each finished unit requires six pounds of material Z, which costs $4 per pound. Each month's ending inventory of material Z should be 40% of the following month's budgeted production. The January 1 inventory has 1,056 pounds of material Z. Prepare a direct materials budget for January.**ZORTEK CORPORATION****Direct Materials Budget**| | January ||-------------------------------|------------------|| Units to produce | || Materials needed for production (Pounds) | || Total materials required (Pounds) | || Materials to purchase (Pounds) | 0 pounds || Cost of direct materials purchases | per pound |**Explanation:**- The table is set up to calculate the requirements for material Z in January. - It includes slots to fill in for: - **Units to produce**: The number of finished products planned for production in January. - **Materials needed for production (Pounds)**: Total weight in pounds of material Z required based on production needs. - **Total materials required (Pounds)**: Sum of materials needed considering production and ending inventory requirements. - **Materials to purchase (Pounds)**: The amount of material Z which needs to be purchased after accounting for beginning inventory. - **Cost of direct materials purchases**: The cost based on pounds of material at $4 per pound, to complete the budget.

Introduction:- Direct material Cost is the total cost incurred by the company for purchase of the…

Zortek Corporation budgets production of 440 units in January and 340 units in February. Each finished unit requires six pour material Z, which costs $4 per pound. Each month's ending inventory of material Z should be 40% of the following month's bu production. The January 1 inventory has 1,056 pounds of material Z. Prepare a direct materials budget for January. Units to produce ZORTEK CORPORATION Direct Materials Budget Materials needed for production (Pounds) Total materials required (Pounds) Materials to purchase (Pounds) Cost of direct materials purchases January units pounds pounds pounds pounds pounds 0 pounds per pound

Zortek Corporation budgets production of 440 units in January and 340 units in February. Each finished unit requires six pour material Z, which costs $4 per pound. Each month's ending inventory of material Z should be 40% of the following month's bu production. The January 1 inventory has 1,056 pounds of material Z. Prepare a direct materials budget for January. Units to produce ZORTEK CORPORATION Direct Materials Budget Materials needed for production (Pounds) Total materials required (Pounds) Materials to purchase (Pounds) Cost of direct materials purchases January units pounds pounds pounds pounds pounds 0 pounds per pound

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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