B-21.04 Problem

B-21.04 Problem - However, blades are stocked in inventory...

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B-21.04 Prepare a direct materials purchasing plan for January, February, and March, based on the following facts. Lana Gonzales owns a business that assembles ceiling fan units. Each fan requires one motor system and four blades. Motors cost $40 each, and blades are $3.50 each. Lana is able to reliably obtain motors as needed, and does not maintain them in inventory.
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Unformatted text preview: However, blades are stocked in inventory sufficient to produce 30% of the following month's expected production. Planned production is as follows: January 10,000 February 12,000 March 15,000 April 11,000 In accordance with the stocking plan, January's beginning inventory included 12,000 blades....
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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