If the estimated sales volume for the period is 5000 units,beginning materials inventory is $50 000,the cost of materials per unit is $150 and an ending materials inventory of $55 000 is desired,the budgeted materials cost for the period would be:

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Quizplus · Accepted Answer

The budgeted materials cost for the period is equal to the beginning materials inventory plus the cost of materials purchased during the period minus the ending materials inventory. In this case, the beginning materials inventory is $50,000, the cost of materials per unit is $150, and the ending materials inventory is $55,000. The estimated sales volume for the period is 5000 units. So, the cost of materials purchased during the period is equal to the estimated sales volume multiplied by the cost of materials per unit, which is 5000 units * $150 = $750,000. Therefore, the budgeted materials cost for the period is $50,000 + $750,000 - $55,000 = $755,000.

If the Estimated Sales Volume for the Period Is 5000