Tall Oak Inc. produces rulers from plastic resin. Tall Oak has estimated production and sales of rulers in units for the next 2 months as: $$\begin{array} { l l l }
& \text { May } &\text { June } \
\text { Estimated production } & 42,000 & 48,000 \
\text { Estimated sales } & 50,000 & 36,000
\end{array}$$ Each ruler requires 0.25 pounds of resin. The cost of resin is $4.50 per pound. Tall Oak wants to have 20% of the next month's materials requirements on hand at the end of each month.
Instructions
Prepare a direct materials purchases budget for the month of May.

Question

Tall Oak Inc. produces rulers from plastic resin. Tall Oak has estimated production and sales of rulers in units for the next 2 months as: $$\begin{array} { l l l } 
&  \text { May } &\text { June }  \
\text { Estimated production } & 42,000 & 48,000 \
\text { Estimated sales } & 50,000 & 36,000
\end{array}$$ Each ruler requires 0.25 pounds of resin. The cost of resin is $4.50 per pound. Tall Oak wants to have 20% of the next month's materials requirements on hand at the end of each month.
Instructions
Prepare a direct materials purchases budget for the month of May.

Quizplus · Accepted Answer

The Answer of Tall Oak Inc. produces rulers from plastic resin. Tall Oak has estimated production and sales of rulers in units for the next 2 months as: $$\begin{array} { l l l } 
&  \text { May } &\text { June }  \
\text { Estimated production } & 42,000 & 48,000 \
\text { Estimated sales } & 50,000 & 36,000
\end{array}$$ Each ruler requires 0.25 pounds of resin. The cost of resin is $4.50 per pound. Tall Oak wants to have 20% of the next month's materials requirements on hand at the end of each month.
Instructions
Prepare a direct materials purchases budget for the month of May.

Tall Oak Inc Each Ruler Requires 0