Beta Ltd estimates their sales volume for the year is 30 000 units.If the beginning materials inventory is $300 000,and the desired ending materials inventory is $240 000,calculate the budgeted cost of materials for the year if the materials cost per unit is $60.

Question

Quizplus · Accepted Answer

The budgeted cost of materials for the year can be calculated as follows: (Sales volume x Materials cost per unit) + (Desired ending materials inventory - Beginning materials inventory) = (30,000 units x $60) + ($240,000 - $300,000) = $1,800,000 - $60,000 = $1,740,000.

Beta Ltd Estimates Their Sales Volume for the Year Is