Berry Products Company manufactures and sells a single product.Each unit requires three feet of tubing.Berry's budgeted production is as follows: Berry budgets monthly ending inventories to be equal to 20% of the following month's production needs.The January beginning inventory meets this requirement.The tubing costs $0.80 per foot.
Required:
Prepare the direct material purchases budget for tubing for the first quarter.

Question

Berry Products Company manufactures and sells a single product.Each unit requires three feet of tubing.Berry's budgeted production is as follows:  Berry budgets monthly ending inventories to be equal to 20% of the following month's production needs.The January beginning inventory meets this requirement.The tubing costs $0.80 per foot.
Required:
Prepare the direct material purchases budget for tubing for the first quarter.

Quizplus · Accepted Answer

The Answer of Berry Products Company manufactures and sells a single product.Each unit requires three feet of tubing.Berry's budgeted production is as follows:  Berry budgets monthly ending inventories to be equal to 20% of the following month's production needs.The January beginning inventory meets this requirement.The tubing costs $0.80 per foot.
Required:
Prepare the direct material purchases budget for tubing for the first quarter.

Berry Products Company Manufactures and Sells a Single Product