Canyon Corporation's budgeted production schedule, by quarters, for the coming year is as follows:Quarter 1= 26,500 unitsQuarter 2 = 23,000 unitsQuarter 3 = 21,000 unitsQuarter 4 = 28,000 unitsEach unit of product requires three pounds of direct material. The company's policy is to begin each quarterwith 25% of that quarter's direct materials production requirements.Canyon expects to have 54,000 pounds of direct materials on hand at the beginning of Quarter 1.What would be Canyon budgeted direct materials purchases (in pounds) for the first quarter?

Particulars Quater 1 Quarter 2 Budgeted Sales in units 26500 23000 Raw materials required per…

arter 1 26,500 units arter 2 23,000 units arter 3 = 21,000 units arter 4 28,000 units h unit of product requires three pounds of direct material. The compa n 25% of that quarter's direct materials production requirements.

arter 1 26,500 units arter 2 23,000 units arter 3 = 21,000 units arter 4 28,000 units h unit of product requires three pounds of direct material. The compa n 25% of that quarter's direct materials production requirements.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

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Question

Canyon Corporation's budgeted production schedule, by quarters, for the coming year is as follows:
Quarter 1= 26,500 units
Quarter 2 = 23,000 units
Quarter 3 = 21,000 units
Quarter 4 = 28,000 units
Each unit of product requires three pounds of direct material. The company's policy is to begin each quarter
with 25% of that quarter's direct materials production requirements.
Canyon expects to have 54,000 pounds of direct materials on hand at the beginning of Quarter 1.
What would be Canyon budgeted direct materials purchases (in pounds) for the first quarter?

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