Respuesta :
Answer:
Cost of purchase for first quarter = $766,500
Explanation:
Total production of current quarter = 57,000 pairs
Raw material required for above = 57,000 X 2 kg per pair = 114,000 kg
Less: Opening inventory of raw material 28,500 kg = 114,000 - 28,500 = 85,500 kg required for quarter 1
Also provided that closing inventory shall be 25% of total raw material required for next quarter.
Raw material required in second quarter = 48,000 pairs X 2 kg each = 96,000 kg
25% of above = 96,000 X 25% = 24,000 kg
Total raw material to be purchased in current quarter that is first quarter = 85,500 kg + 24,000 kg = 109,500 kg
Rate not provided assumed to be same as of opening inventory that is $7 per kg, therefore cost of purchase for first quarter = 109,500 kg X $7 = $766,500
Answer:
The budgeted material purchase cost for the first quarter would be $626,500
Explanation:
In the first quarter , the consumption of material for pair of ski would be equal to ,
= production required x raw materials required per unit
= 57,000 x 2
= 114,000 kg
In the second quarter , the consumption of materials for pair of ski would be equal to ,
= production required x raw materials required per unit
= 48,000 x 2
= 96,000 kg
As per the question company expects to end raw material inventory equal to 25% of the next quarters material needs , so
= 25% x consumption requirement of second quarter
= 25% x 96,000
= 24,000 kg
given that the beginning inventory for his material is 28,500 and we have taken out closing inventory ( 24,000 kg ) , so with this purchase can be taken out
Consumption = Opening inventory + Purchase - Closing inventory
94,000 = 28,500 + Purchase - 24,000
Purchase = 89,500 kg
Now multiplying this purchase with the cost per kg we will get the budgeted material purchase cost
= 89,500 x 7
= $626,500
