1. Schuh Corporation manutactures product AB1 which requires a raw material called X2. In order to make one unit of AB1, 2.5 kgs of raw materials are used. Budgeted production of AB1 for the first 5 months are as follows : January. . 28,000 units February ..27,500 units March... .28,000 units April.. ..29,500 units May.. .27,000 units The company wants to maintain an ending inventory equal to 30% of the following months raw material needs for production. Raw material costs $10 per unit. Schuh Corporation now wants to make a Direct Material Budget. What should be the dollar value of the ending inventory for the month of February, on the direct material budget?

1. Schuh Corporation manutactures product AB1 which requires a raw material called X2. In order to make one unit of AB1, 2.5 kgs of raw materials are used. Budgeted production of AB1 for the first 5 months are as follows : January. . 28,000 units February ..27,500 units March... .28,000 units April.. ..29,500 units May.. .27,000 units The company wants to maintain an ending inventory equal to 30% of the following months raw material needs for production. Raw material costs $10 per unit. Schuh Corporation now wants to make a Direct Material Budget. What should be the dollar value of the ending inventory for the month of February, on the direct material budget?

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter19: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 2CMA: Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing...

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