30 91 Brief Exercise 9 37 Preparing A Direct Materials Purchases Budget Objective 2 Example 9 3tulum Inc Makes A Mexi 1 (42.2 KiB) Viewed 9 times
30 91 Brief Exercise 9 37 Preparing A Direct Materials Purchases Budget Objective 2 Example 9 3tulum Inc Makes A Mexi 2 (229.63 KiB) Viewed 9 times
30 -91 Brief Exercise 9-37. Preparing a Direct Materials Purchases Budget Objective 2 Example 9.3Tulum Inc. makes a Mexican chocolate mix sold in 4-pound boxes. Planned production in units for the first 3 months of the coming year is: January February March 24,700 22,000 30,200 Each box requires 4.2 pounds of chocolate mix and one box. Company policy requires that ending inventories of raw materials for each month be 10% of the next month's production needs. That policy was met for the ending inventory of December in the prior year. The cost of 1 pound of chocolate mix is $1.50. The cost of one box is $0.10. (Note: Round all unit amounts to the nearest unit. Round all dollar amounts to the nearest dollar.)
4 Required: 1. Calculate the ending inventory of chocolate mix in pounds for December of the prior year and for January and February. What is the beginning inventory of chocolate mix for January? 2. Prepare a direct materials purchases budget for chocolate mix for the months of January and February. 3. Calculate the ending inventory of boxes for December of the prior year and for January and February. 4. Prepare a direct materials purchases budget for boxes for the months of January and February.
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