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The Bakery at the ocean | ||||
Direct materials budget | ||||
July | August | September | Quarter | |
Units to be produced | 1460 | 1860 | 1760 | 5080 |
Multiply by : pounds of flour needed per unit | 0.5 | 0.5 | 0.5 | 0.5 |
Quantity needed (lbs) for production | 730 | 930 | 880 | 2540 |
Plus : Desired ending inventory of direct materials | 186 | 176 | 140 | 140 |
Total Quantity needed | 916 | 1106 | 1020 | 2680 |
Less: Beginning inventory on direct materials (lbs) | 146 | 186 | 176 | 146 |
Material to be purchased (lbs) | 770 | 920 | 844 | 2534 |
Price per pound | $ 3.50 | $ 3.50 | $ 3.50 | $ 3.50 |
Cost of materials to be purchased | $ 2,695.00 | $ 3,220.00 | $ 2,954.00 | $ 8,869.00 |
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