F M N D G H 1 Question 2 (56 Marks) 2 Toronto Ltd. manufactures picture frames, Sales for December are expected to be 28,000 units of various sizes. Historically, the average 3 frame requires four metres of framing, one square metre of glass, and two square metres of backing. Beginning inventory includes 1.500 metre 4 of framing, 500 square metres of glass, and 500 square metres of backing. Current prices are $0.30 per metre offraming. $6.00 per square metre of 5 glass, and $2 per square metre of backing. Ending inventory should be 120% of beginning inventory. Purchases are paid for in the month 6 acquired. 7 & Required: 9 1. Determine the quantity of framing, glass, and backing that is to be purchased during December. 10 11 12 Inventory Framing Glass Backing 13 Beginning 14 Ending 15 16 28,000 units 17 18 Total needs 19 Less: Beginning inventory 20 21 Purchases planned 22 23 24 2. Determine the total costs of direct materials for December purchases 25 26 Framing Glass Backing 27 Unit Price of Raw Material 28 29 Subtotal cost of Raw Material 30 31 Total 32 33 1 Question 2 (56 Marks) 2 Toronto Ltd. manufactures picture frames. Sales for December are expected to be 20,000 units of various sizes. Historically, the average 3 frame requires four metres of framing, one square metre of glass, and two square metres of backing, Beginning inventory includes 1,500 metre 4 of framing, 500 square metres of glass, and 500 square metres of backing. Current prices are $0.30 per metre of framing, $6.00 per square metre of 5 glass, and $2.25 per square metre of backing. Ending inventory should be 200% of beginning inventory, Purchases are paid for in the month 6 acquired. 7 8 Required: 9 1. Determine the quantity of framing glass, and backing that is to be purchased during December 10 11 12 Inventory Framing Glass Backing 13 Beginning 14 Ending 15 16 20,000 units 17 18 Total needs 19 Less: Beginning inventory 20 21 Purchases planned 22 23 24 2. Determine the total costs of direct materials for December purchases 25 26 Framing Glass Backing 27 Unit Price of Raw Material 28 29 Subtotal cost of Raw Material 30 31 Total 32 33 24 tinn? sh