Question

Tucker Company makes chairs. Tucker has the following production budget for January - March.

	January	February	March
Units Produced	11516	10275	12401

Each chair produced uses 5 board feet of wood. Management wants ending inventory levels of raw materials to equal 20% of the production needs (in wood) for the next month.

How many board feet of wood does Tucker need to purchase in February?

Round your answer to the nearest whole number. Don't round any intermediate calculations.

Answer 1

Ans.	Tucker COMPANY
	Direct Materials Budget
	For the Month of February
		February
	Units produced	10,275
	(X) Materials requirement per unit	5
	Materials needed for production	51375
	Add: budgeted ending inventory	12401
	Total materials requirements	63776
	Less: Budgeted beginning inventory	-10275
	Materials to be purchased	53501
	*Working Notes:
		January	February	March
	Units produced	11516	10,275	12401
	(X) Materials requirement per unit	5	5	5
	Materials needed for production	57580	51375	62005
	*Ending inventory for February = 20% of the production needs of March
	62,005 * 20%
	12401
	*Beginning inventory for February = Ending inventory of January = 20% of production needs of February
	51,375 * 20%
	10275
	*Beginning inventory of current month is equal to the ending inventory of previous month.