prepare budget
Posted: Sat May 07, 2022 7:57 pm
prepare budget
Direct Material Budget Prepare a direct material budget for the following product sold by Almond Delights Use the information provided below How many lbs of almonds are needed per quarter and how much will they cost? Product: box of 24 almond cookies (Material - almonds) Units to be produced per quarter: see chart below (as per the production budget) Quantity of almonds per box of cookies: 1.2lbs Each lb of almonds costs $ 1.25 Beginning inventory in quarter 1 is 10,000lbs Desired inventory 10% Note it takes other materials to make the almond cookies (ex: sugar, flour etc.) Q3 Q1 02 04 Year Units to be produced 200.000 257,000 220.000 305.000 15,000 15,000 X Quantity of raw material needed per unit (In lbs) = Production needs in libs + Desired ending inventory of raw material Total needs - Beginning inventory of raw material Raw materials to be purchased Cost of raw materials 10,000 10,000 per lb) Cost of raw materials to be purchased
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