Question

In: Accounting

) The Blue Ridge Company is preparing its 3rd Quarter budget. Its production budget show that...

) The Blue Ridge Company is preparing its 3rd Quarter budget. Its production budget show that the     

     required production in unit is:

               July              40,000

             August         50,000

               September    30,000

               October       20,000

Each unit of finished goods requires 3 lbs. of direct materials. Each pound of material cost $5.00 per lbs.

The company’s policy for ending inventory for direct materials is that the end-of-the-month inventory levels for

direct materials will be equal to seven percent of the next month’s production needs. The direct materials inventory

for the quarter has a beginning balance in units of 8,400 lbs. Please provide the direct materials budget for July,

August, September and the quarter. Show your work for full or for partial credit.

Direct Materials Purchases Budget

July

August

September

Quarter

Units to be produced

Quantity (pounds) to be purchased

What is the ending inventory of direct material for July in lbs.?_____

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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