Question

The Bakery on the Riverbank produces organic bread that is sold by the loaf. Each loaf requires 1/2 of a pound of flour. The bakery pays $3.00 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: E(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 148 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 on the Riverbank Data Table Direct Materials Budget For the Months of July through September July August September Quarter July 1,480 loaves Units to be produced August. 1,840 loaves Multiply by: Pounds of flour needed per unit September 1,740 loaves Quantity needed (Ibs) for production October 1,580 loaves Plus: Desired ending inventory of direct materials Total quantity (lbs) needed Print Done Less: Beginning inventory of direct materials Quantity (Ibs) to purchase Multiply by: Cost per pound Total cost of direct material purchases

Answer 1

The Bakery on the River Bank Direct Material Budgets for the Months of July to Septemeber July August September Quarter Units To be Produced 1480 1840 1740 5060 Multiply by: Pounds of Flour needed per unit 0.5 0.5 0.5 0.5 Quantity needed 740 920 870 2530 ADD: Desired Ending Direct Material 184 174 158 Total Quantity Needed 924 1094 1028 2688 Less: Beginning Direct Material 148 184 174 148 Quantity to Purchase 776 910854 2540 Multiply by: Cost per Pound Total Cost of Direct Materila Purchases 2328 2730 2562 7620 158 Desired Ending Inventory =20% of next month Quantity Needed July = (920*20/5) 184 August =( 870*20%) Septmenber= ( 1580*0.5)* 20% 158 174