Prepare the direct materials purchases budget

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Question - Manufacturing produces women shoes according to the following specifications. The following data were used in developing part of manufacturing Sdn. Bhd. 2016 budget:

 

Leather

Canvas

Direct materials

0.50 meter per pair of shoes

1.00 meter per pair of shoes

Desired ending inventory year 2018

10,000 meter

25,000 meter

Desired ending inventory year 2019

15,000 meter

30,000 meter

Purchase cost

RM100 per meter

RM30 per meter

Budgeted production in 2019 is 70,000 pairs of shoes.

Required - Prepare the Direct Materials Purchases budget for 2016 (in quantity and value) for the year 2016.

Reference no: EM133141629

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