Maid-Sweet makes a frozen yogurt dessert. Each frozen yogurt dessert requires 12 ounces of yogurt. The production budget for the first four months of 2012 is as follows:

The company has determined that it must maintain materials inventory equal to 20% of the yogurt needed for the next month's production. Maid-Sweet can purchase yogurt for $0.10 per ounce. On December 31, 2011, there were 80,000 ounces of yogurt in stock. Prepare a budget showing direct materials usage and purchases for the first quarter of 2012 (January, February, and March).

Question

Maid-Sweet makes a frozen yogurt dessert. Each frozen yogurt dessert requires 12 ounces of yogurt. The production budget for the first four months of 2012 is as follows:
 
The company has determined that it must maintain materials inventory equal to 20% of the yogurt needed for the next month's production. Maid-Sweet can purchase yogurt for $0.10 per ounce. On December 31, 2011, there were 80,000 ounces of yogurt in stock. Prepare a budget showing direct materials usage and purchases for the first quarter of 2012 (January, February, and March).

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The Answer of Maid-Sweet makes a frozen yogurt dessert. Each frozen yogurt dessert requires 12 ounces of yogurt. The production budget for the first four months of 2012 is as follows:
 
The company has determined that it must maintain materials inventory equal to 20% of the yogurt needed for the next month's production. Maid-Sweet can purchase yogurt for $0.10 per ounce. On December 31, 2011, there were 80,000 ounces of yogurt in stock. Prepare a budget showing direct materials usage and purchases for the first quarter of 2012 (January, February, and March).

Maid-Sweet Makes a Frozen Yogurt Dessert