Cloud Shoes Direct Materials Budget For the Month of March 2019 Terms March

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 5EB: Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and...
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Cloud Shoes manufactures recovery sandals and is planning on producing 12,000 units
in March and 11,500 in April. Each sandal requires 1.2 yards of material, which costs
$3.00 per yard. The company's policy is to have enough material on hand to equal 15%
of next month's production needs and to maintain a finished goods inventory equal to
20% of the next month's production needs.
PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e.
1,234). All dollar amounts are rounded to whole dollars and shown with "$" 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 Yard
Units to be
Produced
Beginning
Inventory
Desired Ending
Inventory
Yards Needed for
Production
Total Cost of DM
Purchase
DM per Unit
Required DM
Yards
Total DM Required
Transcribed Image Text:Cloud Shoes manufactures recovery sandals and is planning on producing 12,000 units in March and 11,500 in April. Each sandal requires 1.2 yards of material, which costs $3.00 per yard. The company's policy is to have enough material on hand to equal 15% of next month's production needs and to maintain a finished goods inventory equal to 20% of the next month's production needs. PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e. 1,234). All dollar amounts are rounded to whole dollars and shown with "$" 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 Yard Units to be Produced Beginning Inventory Desired Ending Inventory Yards Needed for Production Total Cost of DM Purchase DM per Unit Required DM Yards Total DM Required
Cloud Shoes
Direct Materials Budget
For the Month of March 2019
Terms
March
Transcribed Image Text:Cloud Shoes Direct Materials Budget For the Month of March 2019 Terms March
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