Question

The Bakery at the Ocean produces organic bread that is sold by the loaf. Each loaf requires 1/2 of a pound of flour. The bakery pays $3.50 per pound of the organic flour used in its loaves. The bakery expects to produce the following number of loaves in each of the upcoming four months: EEB Click the icon to view the units to be produced.) The bakery has a policy that it will have 20% of the following month's flour needs on hand at the end of each month. At the end of June, there were 146 pounds of flour on hand. Prepare the direct materials budget for the third quarter, with a column for each month and for the quarter Begin the direct materials budget by determining the total quantity needed, then complete the budget. (Enter the pounds per unit as a decimal to two places. Round your calculations to the nearest whole number.) The Bakery at the Ocean Direct Materials Budget For the Months of July through Septmber Data Table July August September Quarter Units to be produced Multiply by: Pounds of flour needed per unit Quantity needed (Ibs) for production Plus: Desired ending inventory of direct materials Total quantity (Ibs) needed 1,460 loaves 1,860 loaves 1,760 loaves 1,400 loaves July August September October Print Done Enter any number in the edit fields and then click Check Answer

Answer 1

The Bakery at the ocean
Direct materials budget
	July	August	September	Quarter
Units to be produced	1460	1860	1760	5080
Multiply by : pounds of flour needed per unit	0.5	0.5	0.5	0.5
Quantity needed (lbs) for production	730	930	880	2540
Plus : Desired ending inventory of direct materials	186	176	140	140
Total Quantity needed	916	1106	1020	2680
Less: Beginning inventory on direct materials (lbs)	146	186	176	146
Material to be purchased (lbs)	770	920	844	2534
Price per pound	$                     3.50	$                     3.50	$                     3.50	$                     3.50
Cost of materials to be purchased	$            2,695.00	$            3,220.00	$            2,954.00	$            8,869.00