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    3.13 Prepare A Direct Materials Purchases Budget

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    David Faraon
    James Inc. prepared a direct materials purchases budget for chemicals for the year ending December 21, 2020. The budget projected unit production of 84,800 units with direct materials needs of 5.5 gallons per unit, totaling 466,400 gallons needed for production. With a desired ending inventory of 75,281 gallons, the total needs for the year were estimated at 541,681 gallons. Accounting for a beginning inventory of 69,960 gallons, the direct materials to be purchased for the year was projected at 471,721 gallons at a cost of $100 per gallon, totaling $47,172,100 in direct materials purchases for the year.

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    3.13 Prepare A Direct Materials Purchases Budget

    Uploaded by

    David Faraon
    8 views1 page
    James Inc. prepared a direct materials purchases budget for chemicals for the year ending December 21, 2020. The budget projected unit production of 84,800 units with direct materials needs of 5.5 gallons per unit, totaling 466,400 gallons needed for production. With a desired ending inventory of 75,281 gallons, the total needs for the year were estimated at 541,681 gallons. Accounting for a beginning inventory of 69,960 gallons, the direct materials to be purchased for the year was projected at 471,721 gallons at a cost of $100 per gallon, totaling $47,172,100 in direct materials purchases for the year.

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    3.13 Prepare a Direct Materials Purchases Budget

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    James Inc. prepared a direct materials purchases budget for chemicals for the year ending December 21, 2020. The budget projected unit production of 84,800 units with direct materials needs of 5.5 gallons per unit, totaling 466,400 gallons needed for production. With a desired ending inventory of 75,281 gallons, the total needs for the year were estimated at 541,681 gallons. Accounting for a beginning inventory of 69,960 gallons, the direct materials to be purchased for the year was projected at 471,721 gallons at a cost of $100 per gallon, totaling $47,172,100 in direct materials purchases for the year.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    8 views1 page

    3.13 Prepare A Direct Materials Purchases Budget

    Uploaded by

    David Faraon
    James Inc. prepared a direct materials purchases budget for chemicals for the year ending December 21, 2020. The budget projected unit production of 84,800 units with direct materials needs of 5.5 gallons per unit, totaling 466,400 gallons needed for production. With a desired ending inventory of 75,281 gallons, the total needs for the year were estimated at 541,681 gallons. Accounting for a beginning inventory of 69,960 gallons, the direct materials to be purchased for the year was projected at 471,721 gallons at a cost of $100 per gallon, totaling $47,172,100 in direct materials purchases for the year.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 1

    James Inc.

    Direct Materials Purchases Budget


    For the Year End December 21, 2020

    Gallons of chemical QUARTER


    1 2 YEAR
    Units Produced 43800 41000 84800
    Direct Materials per unit 5.5 5.5 5.5
    Production Needs 240900 225500 466400
    Desired ending inventory 33825 41456 75281
    Total needs 274725 266956 541681
    Less: Beg Inventory 36135 33825 69960
    Direct Materials to be purchased 238590 233131 471721
    Cost gallon of chemical 100 100 100
    Total purchase cost plain t-shirts 23859000 23313100 47172100

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