Question

Requirement 4. Prepare the direct material purchases budget (in quantities). (For entries with a balance, make sure to enter "0" in the appropriate field.) Direct Materials Purchases Budget (in Quantities) For the Year Ending December 31, 2017 Direct Materials A B с To be used in production Thingone Thingtwo Total Add target ending Inventory Total requirements Deduct beginning inventory Purchases to be made (units) Enter any number in the edit fields and then click Check Answer.

Answer 1

с 0 Direct Materials Purchases Budget (in Quantities) For the year ending December 31, 2017 Direct Materials Particulars A B To be used in production Thingone (budgeted production of 72,000 units times 5 lbs. of A, 3 lbs. of B) 360,000 216,000 Thingtwo (budgeted production of 42,000 units times 6 lbs. of A, 4 lbs. of B, 2 lb. of C) 252,000 168,000 Total 612,000 384,000 Add Target Ending Inventory 41,000 38,000 Total Requirement 653,000 422,000 Deduct Beginning Inventory 36,000 33,000 Purchase to be made in units 617,000 389,000 84,000 84,000 7,000 91,000 6,000 85,000 Production Budget For the year ending December 31, 2017 Particulars Thingone Budgeted Sales 67,000 Add target finished goods inventories 32,000 Total requirements 99,000 Deduct finished goods inventories 27,000 Units to be produced 72,000 Thingtwo 41,000 12,000 53,000 11,000 42,000