Answered: .Sunrise Poles manufactures hiking…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 5EA: Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700...

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4.Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The company’s policy is to have enough material on hand to equal 10% of the next month’s production needs and to maintain a finished goods inventory equal to 25% of the next month’s production needs.

PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e. 1,234). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345), except for any "per" amounts (units or dollars), which are rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56)

Cost per Pound	Desired Ending Inventory	DM per Unit
Units to be Produced	Pounds Needed for Production	Required DM Pounds
Beginning Inventory	Total Cost of DM Purchase	Total DM Required

Using the information above, along with the terms above, prepare a direct materials (DM) budget for the the month of March

Sunrise Poles

Direct Materials Budget

For the Month of March 2019

Terms	March
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