Glaziers Professional Corp. manufactures customized frames for pictures and certificates. Sales for August are expected to...

Glaziers Professional Corp. manufactures customized frames for pictures and certificates. Sales for August are expected to be 10,000 units of various sizes. The average frame requires:

Wood: 4 metres

Glass: One square metre

Backing: Two square metres

Beginning inventory includes 1,500 metres of framing, 500 square metres of glass, and 500 square metres of backing. Current prices are $0.30 per metre for framing, $6.00 per square metre for glass, and $2.25 per square metre of backing. Ending inventory should be 150% of beginning inventory. Purchases are paid for in the same month acquired.

Required:

a) Determine the quantity of framing, glass, and backing required to be purchased in August.

b) Determine the total costs of direct materials for August purchases.

Solutions

Expert Solution

a) Purchase quantity = Materials requirements for 10,000 units + Ending inventory - Beginning inventory

1. Calculation of materials requirement for 10,000 units:

	For an average frame	For 10,000 units
wood(framing)	4 metres	*410,000 = 40,000 metres**
Glass	1 square metre	*110,000 = 10,000 square metres**
Backing	2 square metres	*210,000 = 20,000 square metres**

2. Calculation of ending inventory (150% of beginning inventory):

	Beginning inventory	Ending inventory needed:
Framing	1,500 metres	*1,500150% = 2,250 metres**
Glass	500 Square metres	*500150% = 750 square metres**
Backing	500 Square metres	*500150% = 750 square metres**

3. Calculation of purchase quantity for august = materials required for 10,000 units + Ending inventory - Beginning inventory

Framing = 40,000 + 2,250 - 1,500 = 40,750 metres

Glass = 10,000 + 750 - 500 = 10,250 square metres

Backing = 20,000 + 750 - 500 = 20,250 square metres

b) Total costs of direct materials purchased in August:

Direct materials	Purchase quantity	Rate per unit of material	Total cost
Framing	40,750 metres	$0.30 per metre	*$0.30 40,750 = $12,225**
Glass	10,250 square metres	$6.00 per square metre	*$6.00 10,250 = $61,500**
Backing	20,250 square metres	$2.25 per square metre	*$2.25 20,250 = $45,562.5**
Total costs of direct materials purchased in august (Framing + Glass + Backing)	$119,287.5

ekkarill92 answered 9 months ago

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