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Looking For: Assumption 0% Desired RM...

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Accounting

Looking For:

Assumption
0% Desired RM ending inventory percentage
- RM required per unit of product (in pounds)
$0.00 RM cost per pound
$0 Beginning Accounts Payable balance
- Beginning RM inventory in 1st quarter (in pounds)

Milo-Freeze Company

Direct (Raw) Materials Budget

For the Year

Year 2 Year 3

Q1Q2Q3Q4Year 2 TotalQ1

Required production in units of finished goods (from production budget) 46,000 72,000 85,000 56,000 259,000 73,000

Amount of raw materials needed per unit of product 6 6 6 6 6 6

Production needs 276,000 432,000 510,000 336,000 1,554,000 438,000

Add: Desired amount of ending inventory of raw materials 43,200 51,000 33,600 43,800 43,800

Total amount of raw materials needed 319,200 483,000 543,600 379,800 1,597,800

Less: Amount of beginning inventories of raw materials 23,000 43,200 51,000 33,600 23,000

Amount of raw materials to be purchased 296,200 439,800 492,600 346,200 1,574,800

Unit cost of raw materials $ 0.80 $ 0.80 $ 0.80 $ 0.80 $ 0.80

Cost of raw materials to be purchased $ 236,960 $ 351,840 $ 394,080 $ 276,960 $ 1,259,840

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