Led Zeppelin Ltd manufactures two products, (1) Rock and (2) Roll. The budgeted units to be produced are as follows:
It takes 2 kilograms of direct materials to produce the Rock product and 4 kilograms of direct materials to produce the Roll product. It is the company's policy to maintain an inventory of direct materials on hand at the end of each month equal to 20% of the next month's production needs for the Rock product and 10% of the next month's production needs for the Roll product. Direct materials inventory on hand at June 30 were 4,000 kilograms for the Rock product and 6,000 kilograms for the Roll product. The cost per kilogram of materials is $5 Rock and $7 Roll.
Instructions : Prepare separate direct materials budgets for each product for the third quarter of 2018.

Question

Led Zeppelin Ltd manufactures two products, (1) Rock and (2) Roll. The budgeted units to be produced are as follows:
  It takes 2 kilograms of direct materials to produce the Rock product and 4 kilograms of direct materials to produce the Roll product. It is the company's policy to maintain an inventory of direct materials on hand at the end of each month equal to 20% of the next month's production needs for the Rock product and 10% of the next month's production needs for the Roll product. Direct materials inventory on hand at June 30 were 4,000 kilograms for the Rock product and 6,000 kilograms for the Roll product. The cost per kilogram of materials is $5 Rock and $7 Roll.
Instructions : Prepare separate direct materials budgets for each product for the third quarter of 2018.

Quizplus · Accepted Answer

The Answer of Led Zeppelin Ltd manufactures two products, (1) Rock and (2) Roll. The budgeted units to be produced are as follows:
  It takes 2 kilograms of direct materials to produce the Rock product and 4 kilograms of direct materials to produce the Roll product. It is the company's policy to maintain an inventory of direct materials on hand at the end of each month equal to 20% of the next month's production needs for the Rock product and 10% of the next month's production needs for the Roll product. Direct materials inventory on hand at June 30 were 4,000 kilograms for the Rock product and 6,000 kilograms for the Roll product. The cost per kilogram of materials is $5 Rock and $7 Roll.
Instructions : Prepare separate direct materials budgets for each product for the third quarter of 2018.

Led Zeppelin Ltd Manufactures Two Products, (1) Rock and (2)