Solution-Calculate the beginning direct materials inventory

Calculate the beginning direct materials inventory

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Reference no: EM133185953

Question - CWB Corp. makes hats and has the following inventory policy:

CWB maintains an ending inventory of materials equal to 4 percent of the next quarter's production needs.

The ending inventory for Quarter 4 (for the year) is assumed to be 50 yards. Each hat requires a total of 0.5 yard of material at a cost of $1.50 per yard.

Below is the budgeted production units:

	Q1	Q2	Q3	Q4	Yearly
Production units	1500	1500	2000	2000	7000

Use information from above for the three questions listed below.

1. Calculate the beginning direct materials inventory for Quarter 2 (in yards).

2. Calculate the budgeted cost of direct materials purchase for Quarter 2.

3. Calculate the budgeted cost of direct materials purchase for the year.

Reference no: EM133185953

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Calculate the beginning direct materials inventory

Reference no: EM133185953

Reference no: EM133185953

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