Solution-Prepare the direct materials purchases budget

Prepare the direct materials purchases budget

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Reference no: EM132922608

Problem - Preparing a direct materials purchases budget (CMA adapted) - Rider Auto has developed the following production plan for its new auto part.

	January	February	March	April
Budgeted production (units)	12,000	8,000	13,000	15,000

Each unit contains four pounds of raw material. The desired raw materials ending inventory is 40% of the next month's production needs, plus an additional 100 pounds. December's ending inventory meets this requirement.

Required - Prepare the direct materials purchases budget for the ?rst three months of the coming year.

Reference no: EM132922608

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Prepare the direct materials purchases budget

Reference no: EM132922608

Reference no: EM132922608

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