Question 3: A Direct Materials Budget Adams Manufacturing manufactures one product. The budgeted units to be...
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Question 3: A Direct Materials Budget Adams Manufacturing manufactures one product. The budgeted units to be produced are as follows: 2022 Units: July 10,000 August 6,000 September 9,000 October 8,000 It takes 2.5 pounds of direct materials to produce the product. It is the company's policy to maintain an inventory of direct materials at the end of each month equal to 25% of the next month's production needs for the product. Direct materials inventory on hand at June 30 were 6,250 pounds. The cost per pound of materials is $4. Instructions Prepare a direct materials budget for the product for the third quarter of 2022. (2.5%) ADAMS MANUFACTURING Direct Materials Budget For the Quarter Ended September 30, 2022 July August September Total Units to be produced Direct materials per unit Total pounds needed for production 10,000 6,000 9,000 25,000 x2.5 2.5 x2.s 25,000 15,000 Add: Desired ending direct materials inventory Soo 1500 27,500 16,900 Total pounds of direct materials required Less: Beginning direct materials inventory 6200 19021 Budgeted direct materials purchases 21289 14,737 Cost per pound $ 4 $4 X 85,000 59,790 22, 506 62, soo 22506250 20750 68780 370-6228,203.125 24,359.375 60,546-875 $4 97,437.5 62,500 2.42187. Budgeted cost of direct materials purchases 7 Question 3: A Direct Materials Budget Adams Manufacturing manufactures one product. The budgeted units to be produced are as follows: 2022 Units: July 10,000 August 6,000 September 9,000 October 8,000 It takes 2.5 pounds of direct materials to produce the product. It is the company's policy to maintain an inventory of direct materials at the end of each month equal to 25% of the next month's production needs for the product. Direct materials inventory on hand at June 30 were 6,250 pounds. The cost per pound of materials is $4. Instructions Prepare a direct materials budget for the product for the third quarter of 2022. (2.5%) ADAMS MANUFACTURING Direct Materials Budget For the Quarter Ended September 30, 2022 July August September Total Units to be produced Direct materials per unit Total pounds needed for production 10,000 6,000 9,000 25,000 x2.5 2.5 x2.s 25,000 15,000 Add: Desired ending direct materials inventory Soo 1500 27,500 16,900 Total pounds of direct materials required Less: Beginning direct materials inventory 6200 19021 Budgeted direct materials purchases 21289 14,737 Cost per pound $ 4 $4 X 85,000 59,790 22, 506 62, soo 22506250 20750 68780 370-6228,203.125 24,359.375 60,546-875 $4 97,437.5 62,500 2.42187. Budgeted cost of direct materials purchases 7
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Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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