we a Use following information of a small pottery business: ArtCraft pottery to develop a direct...

 

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we a Use following information of a small pottery business: ArtCraft pottery to develop a direct material purchase budget. The budgeted units of pottery are to be produced in each of the following four quarters: Q1: 1,060 Q3: 1,600 Q2: 1,260 Q4: 1,800 In addition to above information, plain pottery is $3 per unit and the material used to colour the pottery "colour" is $0.20 per ounce. On a per unit basis, the factory needs one pound of clay and five ounces of colour to produce the final piece. Aircraft pottery's policy is to have 10% of the following quarter's production needs in ending inventory. This policy changes your ending inventory. This policy changes your material needs because this 10% ending inventory must be taken into account in the budget. The factory has 58 pounds of clay and 390 ounces of colour in hand on January 1. At the end of the year, the desired ending inventory is 106 pounds and 530 ounces of colour. (Hint: first, compute units of each component to manufacture the pottery a company needs) we a Use following information of a small pottery business: ArtCraft pottery to develop a direct material purchase budget. The budgeted units of pottery are to be produced in each of the following four quarters: Q1: 1,060 Q3: 1,600 Q2: 1,260 Q4: 1,800 In addition to above information, plain pottery is $3 per unit and the material used to colour the pottery "colour" is $0.20 per ounce. On a per unit basis, the factory needs one pound of clay and five ounces of colour to produce the final piece. Aircraft pottery's policy is to have 10% of the following quarter's production needs in ending inventory. This policy changes your ending inventory. This policy changes your material needs because this 10% ending inventory must be taken into account in the budget. The factory has 58 pounds of clay and 390 ounces of colour in hand on January 1. At the end of the year, the desired ending inventory is 106 pounds and 530 ounces of colour. (Hint: first, compute units of each component to manufacture the pottery a company needs)

Answer rating: 100% (QA)

First we need to find out the ending inventory of Q1 Q2 and Q3 ... View the full answer