Calculate dollar amount of direct materials to be purchased

Reference no: EM132089004

Question: ZZ, Inc. has budgeted sales for the next five months as follows: Budgeted Sales in Units January 12,000 units February 15,000 units March 11,000 units April 22,000 units May 18,000 units ZZ, Inc. used the following information in creating its master budget for the year:

1. Ending finished goods inventory for each month should be equal to 10% of the next month's expected sales in units.

2. Ending direct materials inventory for each month should be equal to 25% of the next month's production needs.

3. Each unit produced requires 4 pounds of direct materials.

4. Direct materials are purchased for $2.75 per pound. Calculate the dollar amount of direct materials to be purchased in January. Do not use decimals in your answer.

Reference no: EM132089004

Questions Cloud

Compute the unit product cost for the year : Zola Company manufactures and sells one product. The following information pertains to the company's first year of operations.

What is the volume of sales in units : Zeus, Inc. produces a product that has a variable cost of $9.50 per unit. The company's fixed costs are $40,000. The product sells for $12.00 a unit.

Create amortization schedule for zero-interest-bearing note : Zero-Interest Note: To date, Prime Corp. has been able to finance its successful operations with investments from its principal owner and cash flows.

Prepare the journal entries to record income taxes : Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2013 through 2016 except.

Calculate dollar amount of direct materials to be purchased : ZZ, Inc. has budgeted sales for the next five months as follows: Budgeted Sales in Units January 12,000 units February 15,000 units March 11,000 units April 22.

Prepare journal entries to record the transactions of S Ltd : Prepare the journal entries to record the transactions of S Ltd up to and including that which took place on 28 March 2016. Show all relevant dates

What is the adjusted present value : Zoso is a rental car company that is trying to determine whether to add 25 cars to its fleet. The company fully depreciates all its rental cars over four years.

Determine the cost of goods available for sale : Ziad Company had a beginning inventory on January 1 of 300 units of Product 4-18-15 at a cost of $20 per unit. During the year, the following purchases.

What is the bond book value reported in the december : Zebra uses the straight-line amortization method. What is the bond book value reported in the December 31, 2016, balance sheet

User Account

All Pages