9 Units to produceApril620May June July750720720Check my workEach finished unit requires 5 pounds of direct materials. The company wants to end each month with direct materialsinventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 930 pounds.Direct materials cost $2 per pound. Prepare a direct materials budget for April, May, and June.okntRAMOS COMPANYDirect Materials BudgetAprilMayJuneintUnits to producerences620750720 unitsMaterials required per unitMaterials needed for production (pounds)555 pounds2,400Add: Desired ending materials inventory (pounds)915Total materials required (pounds)Less: Beginning materials inventory (pounds)9300Materials to purchase (pounds)Materials cost per poundCost of direct materials purchases$2.00$2.00$2.00$0

Direct material purchase budget is the statement which is prepared by the entity to estimate the…

Units to produce April May 620 750 June July 720 720 Each finished unit requires 5 pounds of direct materials. The company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 930 pounds. Direct materials cost $2 per pound. Prepare a direct materials budget for April, May, and June. RAMOS COMPANY Direct Materials Budget April May June 620 750 720 units 5 5 5 pounds 2,400 915 Units to produce Materials required per unit Materials needed for production (pounds) Add: Desired ending materials inventory (pounds) Total materials required (pounds) Less: Beginning materials inventory (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases 930 $ 2.00 $ 2.00 $ 2.00 $ 0 0

Units to produce April May 620 750 June July 720 720 Each finished unit requires 5 pounds of direct materials. The company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 930 pounds. Direct materials cost $2 per pound. Prepare a direct materials budget for April, May, and June. RAMOS COMPANY Direct Materials Budget April May June 620 750 720 units 5 5 5 pounds 2,400 915 Units to produce Materials required per unit Materials needed for production (pounds) Add: Desired ending materials inventory (pounds) Total materials required (pounds) Less: Beginning materials inventory (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases 930 $ 2.00 $ 2.00 $ 2.00 $ 0 0

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 7CE: Refer to Cornerstone Exercise 8.6. Required: 1. Calculate the total budgeted cost of units produced...

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