Mallards Manufacturing produces waterproof tarps for camping, and the company has been in business since 1955. The following budget information has been provided for the 2024 production year:
What is the budgeted quantity of direct materials to be purchased?

Question

Mallards Manufacturing produces waterproof tarps for camping, and the company has been in business since 1955. The following budget information has been provided for the 2024 production year:
 What is the budgeted quantity of direct materials to be purchased?

Quizplus · Accepted Answer

The units to be produced must be calculated first (Sales Volume + Targeted Ending Finished Goods Quantity F1F1F1S1?F1F1F10 Beginning Finished Goods Quantity) = 105,000 + 45,000 F1F1F1S1?F1F1F10 25,000 = 125,000. The quantity to be produced is used to calculate the quantity of direct material to be purchased ((Quantity to be Produced × Direct Material per Unit) + Targeted Ending Direct Material Quantity F1F1F1S1?F1F1F10 Beginning Direct Material Quantity) = (125,000 × 1.25) + 56,250 F1F1F1S1?F1F1F10 34,000 = 178,500.

Mallards Manufacturing Produces Waterproof Tarps for Camping, and the Company