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In: Accounting

You prepare the direct materials purchase budgets for Crunchy Pickles. In August, the company plans to...

You prepare the direct materials purchase budgets for Crunchy Pickles. In August, the company plans to sell 180 cases of pickles, each containing 12 jars of pickles. Each jar of pickles requires 2 pounds of cucumbers. Wastage and spoilage attributed to each jar is 0.1 pound and 0.25 pound, respectively. The standard price for each pound of cucumbers is $0.75. The company plans to have 500 pounds of cucumbers in inventory at the end of July and 100 pounds of cucumbers in inventory at the end of August. What will you report as the August direct materials purchase budget for pickles?

A: $4,676

B : $5,176

C : $2,160

D : $3,507

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Expert Solution

Q. What will you report as the August direct materials purchase budget for pickles?

Answer: D : $3,507

Calculation

ekkarill92 answered 1 year ago
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