90.2K

Verified Solution

Link Copied!

must use options from drop down menu^

answer (a3)

Kingbird Towel Company completely stocked out of its cotton yarn for making towels in April (last month). So management is starting over, trying to build up an inventory of yarn while ensuring there is enough yarn on hand for the production group to catch up with orders. Phyllis is responsible for putting all operating budgets together to estimate operating income for May. Here is the information she has. Budgeted Fixed MOH costs $6,300 total (including $500 of depreciation) Budgeted variable SG\&A costs $0.40 per unit sold Budgeted fixed SG\&A costs $6,300 total (including $750 of depreciation) Prepare the sales budget for Kingbird Towel for the month of May. Prepare the production budget for Kingbird Towel for the month of May. Prepare the DM purchases budget for Kingbird Towel for the month of May. (Round DM cost per yard to 2 decimal ploces, Do not leave any answer fieid blank. Enter 0 for answers.) Beginning DM Inventory (Yards) Budgeted DM Quantity to be Purchased (Yards) Budgeted Units to be Produced Target Ending DM lmentory (Yards) DM Cont per Yard Quarntity of DM per Unit [Yards] Total Budgeted Cost of DM Purchases Total DM Imventory Needs (Yards) Total Production Needs (Yards)

Answer & Explanation Solved by verified expert

See Answer