Document42 - Moreno Industries has adopted the following...

Unformatted text preview: Moreno Industries has adopted the following production budget for the first 4 months of 2011. Month Un_its Month Un_its January 10,288 March 5,350 February 8,120 April 4,440 Each unit requires 3 pounds of raw materials costing $4 per pound. On December 31, 2010, the ending raw materials inventory was 9,420 pounds. Management wants a raw materials inventory at the end of the month equal to 30% of next month's production requirements. Complete the direct materials purchases budget by month for the first quarter. MORENO INDUSTRIES Direct Materials Purchases Budget For the Quarter Ending March 31, 2011 My Februarg a_rch Unite to be produced 10280 8120 5350 Direct materials per unit X 3 X 3 X 3 Total pounds needed for production 30840 24360 16050 Add: Desired ending direct materials T308 4815 3096 Total materials required 38148 28135 20046 Less: Beginning direct materials 8420 T308 4815 Direct materials purchases 28328 2186? 15231 Cost perpound X $4 X $4 X $4 Total cost of direct materials purchases $ 114912 $ 37453 $ 50924 ...
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