Each ruler requires 0.25 pounds of resin

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Reference no: EM131033068

Tall Oak, Inc. produces ruler from plactic resin. TallOak has estimated production and sales of rule in units for the next 2 months as:

May June

Estimated production 42,000 48,000

Estimated sales 50,000 36,000

Each ruler requires 0.25 pounds of resin. The cost of resin is $4.50 per pound. Tall Oak wants to have 20% of the next month's material requirements on hand at the end of the each month.

instruction: on columna workpaper ,perpare a direct material purchases budget for the month of May

Reference no: EM131033068

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