C.J.'s Cookie Company produces chocolate chip cookies. Raw materials inventory includes flour, sugar, and chocolate chips at standard cost of $5.00 per pound. C.J. uses 1/20 of a pound of raw materials per cookie. CJ's anticipates quarterly sales as follows:
Beginning finished goods inventory is 90,000 cookies. Beginning raw materials inventory is 6,000 pounds. Target raw materials = 40% of next quarter's material needs. Target finished goods inventory is 30% of next quarter's sales.
-What is the budgeted cost of direct materials that need to be purchased for the second quarter, 2012?

Question

C.J.'s Cookie Company produces chocolate chip cookies. Raw materials inventory includes flour, sugar, and chocolate chips at standard cost of $5.00 per pound. C.J. uses 1/20 of a pound of raw materials per cookie. CJ's anticipates quarterly sales as follows:
 Beginning finished goods inventory is 90,000 cookies. Beginning raw materials inventory is 6,000 pounds. Target raw materials = 40% of next quarter's material needs. Target finished goods inventory is 30% of next quarter's sales. 
-What is the budgeted cost of direct materials that need to be purchased for the second quarter, 2012?

Quizplus · Accepted Answer

The Answer of C.J.'s Cookie Company produces chocolate chip cookies. Raw materials inventory includes flour, sugar, and chocolate chips at standard cost of $5.00 per pound. C.J. uses 1/20 of a pound of raw materials per cookie. CJ's anticipates quarterly sales as follows:
 Beginning finished goods inventory is 90,000 cookies. Beginning raw materials inventory is 6,000 pounds. Target raw materials = 40% of next quarter's material needs. Target finished goods inventory is 30% of next quarter's sales. 
-What is the budgeted cost of direct materials that need to be purchased for the second quarter, 2012?

CJ'S Cookie Company Produces Chocolate Chip Cookies