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Iuuestion Help The McKnight Company has prepared a sales budget of 48,000 finished units for a 3 month period. The company ha
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Answer #1

Direct Material Purchases Budget For the 3 Months Ending March 31 To be used in production Add: Target ending inventory Total

Units produced = Budgeted units sold + Ending inventory - Beginning inventory
Units produced = 48,000 + 18,000 - 13,000
Units produced = 53,000

Materials to be used in production = Units produced * Direct materials per unit
Materials to be used in production = 53,000 * 4
Materials to be used in production = 212,000

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