1. Swan Company is a maker of men's slacks. The company would like to maintain 20,000 yards of fabric in ending inventory. The beginning fabric inventory is expected to contain 25,000 yards. The expected yards of fabric needed for sales is 90,000. Compute the yards of fabric that Swan needs to purchase.

a. 90,000 b. 85,000 c. 95,000 d. 135,000

2. In preparing the direct material purchase budget for next quarter, the plant controller has the following information available.

Budgeted unit sales 2,000
Pounds of materials per unit 4#
Cost of materials per pound $3
Pounds of materials on hand 400#
Finished units on hand 250
Target ending units inventory 325
Target ending inventory of pounds of materials 800#

How many pounds of materials must be purchased?

a. 7,900 b. 8,700 c. 2,475 d. 9,300

Answer rating: 100% (QA)

Question 1 The correct answer is option b 85000 Calculation Equity tota... View the full answer