Question: pring Co (the company) needs your help with preparing their operating budgetsfor the coming year. They have asked you to focus on their garden gloves
pring Co ("the company") needs your help with preparing their operating budgetsfor the coming year. They have asked you to focus on their garden gloves productline for the first quarter of 2020. The projected sales for the first quarter of 2020and the projected beginning and ending inventory balances are as follows:Unit sales are 6,000 for the quarter.Unit sales price is $20 per unit.Number of units in closing inventory on Dec 31, 2019 is 5 units.Desired number of units in closing inventory on Mar 31, 2020 is 1% of sales for the quarter.The products are cut and sewn by the company and then university and collegecrests are added.Each unit requires half an hour of direct labour time and direct labour costs$18 per hour.Each unit is made of 1.5 meters of high quality material which costs$6 per metre.The company's inventory policy is to have 1,000 meters of direct materials ininventory at the end of each quarter.The company's variable overhead rate is $15 per direct labour hour.The company's fixed overhead is budgeted at $2,500 per month.

Question 34 (4 points) Assume units to be produced are 7,500. Prepare the direct materials budget for the first quarter of 2020. What are the direct materials production needs for the quarter? What are the direct materials total needs for the quarter? A How much direct materials need to be put Spell check A/ What is the total expected purchase cost of direct materials for the quarter? A/
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