Balmforth Products, Inc. makes and sells a single product called Bik. It takes two yards of Material A to make one unit
Posted: Sat May 07, 2022 7:57 pm
Balmforth Products, Inc. makes and sells a single product called
Bik. It takes two yards of Material A to make one unit of Bik.
Budgeted production of Biks for the five months of next year is as
follows:
February 14,000 units
March 15,500 units
April 11,900 units
May 12,600 units
June 14,500 units
The company wants to maintain monthly ending inventories of
Material A equal to 20% of the following month's production needs.
The cost of Material A is $1.80 per yard. The company wants to
prepare a Direct Materials Purchases Budget.
What is the total cost of Material A to be purchased in
March?
$53,208
$29,560
$26,604
$64,368
Bik. It takes two yards of Material A to make one unit of Bik.
Budgeted production of Biks for the five months of next year is as
follows:
February 14,000 units
March 15,500 units
April 11,900 units
May 12,600 units
June 14,500 units
The company wants to maintain monthly ending inventories of
Material A equal to 20% of the following month's production needs.
The cost of Material A is $1.80 per yard. The company wants to
prepare a Direct Materials Purchases Budget.
What is the total cost of Material A to be purchased in
March?
$53,208
$29,560
$26,604
$64,368