Katy Company budgeted units to be produced are as follows: 2008................................. Units July................................... 10,000 August.............................. 6,000 September.......................
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Question:
Katy Company budgeted units to be produced are as follows:
2008................................. Units
July................................... 10,000
August.............................. 6,000
September....................... 9,000
It takes 3 pounds of direct materials to produce the product. It is the company's policy to maintain an inventory of direct materials on hand at the end of each month equal to 30% of the next month's production needs. Direct materials inventory on hand at June 30 were 9,000 pounds. The cost per pound of materials is $5.
Instructions:
Prepare a direct materials budget for 2007.
Related Book For
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
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