Question: July. . . . . . . . . . . . . . . . . . . 1 , 5 4 0 loaves

July. ..................
1,540 loaves
August. ...............
1,900 loaves
September. ............
1,680 loaves
October. ..............
1,460 loaves
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PrintDoneproduces organic bread that is sold by the loaf. Each loaf requires
1 divided by 21/2
of a pound of flour. The bakery pays
$ 3.00$3.00
per pound of the organic flour used in its loaves. The bakery expects to produce the following number of loaves in each of the upcoming four months:
View the units to be produced.
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The bakery has a policy that it will have
10%10%
of the following month's flour needs on hand at the end of each month. At the end of June, there were
7777
pounds of flour on hand. Prepare the direct materials budget for the third quarter, with a column for each month and for the quarter.
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Part 1
Begin the direct materials budget by determining the total quantity needed, then complete the budget. (Enter the pounds per unit as a decimal to two places. Round your calculations to the nearest whole number.)
The Bakery by the Sea
Direct Materials Budget
For the Months of July through September
July
August
September
Quarter
Units to be produced
1,540
1,900
1,680
Multiply by: Pounds of flour needed per unit
Quantity needed (lbs) for production
Plus: Desired ending inventory of direct materials
Total quantity (lbs) needed
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