Respuesta :
Answer: $372400 ⇒ This is the budgeted materials cost for January.
Explanation:
Given that,
Budgets production in January = 25,000 units
Budgets production in February = 29,000 units
Material required for production(in January):
Each finished unit requires 4 pounds of raw material K that costs $3.50 per pound
= 25000 × 4 × $3.50
= 350,000
Ending Material Balance:
Budgeted material = 29000 × 4 × 3.50 = 406,000
so,
40% of following month’s budgeted materials will be: 40% of 406,000
= 162400
Beginning Material Balance:
= 40000 pounds × 3.50
= 140,000
∴ Budgeted raw material = Material required for production + ending material balance - beginning material balance
= 350000 + 162400 - 140,000
= $372400 ⇒ This is the budgeted materials cost for January.
Answer:
The budgeted materials cost for January is 106,400 pounds
Explanation:
For computing the budgeted material cost for January month, the calculation is shown below:
= Required production + ending raw material inventory - beginning raw material inventory
where,
Required production = January production units × required pounds
= 25,000 units × 4
= 100,000 pounds
Ending raw material inventory = 40% of February month × required pound
= 40% × 29,000 × 4
= 46,400 pounds
Now, put these values in the above formula
So, budgeted material cost for January month is equals to
= 100,000 pounds + 46,400 pounds - 40,000 pounds
= 106,400 pounds
Hence, the budgeted materials cost for January is 106,400 pounds
