Fedrick, of Zenith Bakery, estimates the sale of 180 cookies and the production of 200 cookies for January. Each cookie requires 10 grams of flour and costs $0.2 per gram. Budgeted ending flour requirement is estimated to be 500 grams and beginning flour inventory is 200 grams. How much flour needs to be purchased, and how much will it cost?
A) 1,700 grams, $340
B) 2,700 grams, $540
C) 2,300 grams, $460
D) 2,000 grams, $400

Question

Quizplus · Accepted Answer

The Budgeted Quantity of Direct Material (flour) = (Budgeted Units to be Produced × Budgeted Quantity of Material required) + Budgeted Ending Direct Material Inventory Quantity F1F1F1S1?F1F1F10 Budgeted Beginning Direct Material Inventory Quantity
Budgeted Quantity of Direct Material = (200 × 10) + 500 F1F1F1S1?F1F1F10 200 = 2,300
Budgeted Cost of Direct Material = Budgeted Quantity of Direct Material × Price per Unit of Direct Material
Budgeted Cost of Direct Material = 2,300 × $0.2 = $460

Fedrick, of Zenith Bakery, Estimates the Sale of 180 Cookies