Reference no: EM133007710
Question - Steering industrial has estimated that production for the next 5 quarters will be:
Production information
1st quarter, 2020 50,400 units
2nd quarter, 2020 45,600 units
3rd quarter, 2020 55,200 units
4th quarter, 2020 43,200 units
1st quarter, 2021 52,000 units
Finished units Of production require 6 pounds of raw material per unit. The raw material cost is $7 dollars per pound. There is 317,520 of raw materials on hand at the beginning of the first quarter 2020 steering desires to have 15% of next quarter's material requirements on hand at the end of each quarter.
Required - Prepare Quarterly direct materials purchases budgets for steering industrial for 2020.
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