Finished units of production require 7 pounds of raw

Reference no: EM13602071

Direct Materials Purchases Budget [LO 2]Roehler Industrial has estimated that production for the next five quarters will be:

Production Information
1st Quarter, 2011 49,000 units
2nd Quarter, 2011 45,000 units
3rd Quarter, 2011 53,000 units
4th Quarter, 2011 43,000 units
1st Quarter, 2012 51,000 units

Finished units of production require 7 pounds of raw material per unit. The raw material cost is $4 per pound. There are 65,170 pounds of raw material on hand at the beginning of the first quarter, 2011. Roehler desires to have 19 percent of next quarter's material requirements on hand at the end of each quarter.Prepare quarterly direct materials purchases budgets for Roehler Industrial for 2011.

Reference no: EM13602071

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