90.2K

Verified Solution

Link Copied!

Xavier Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use 40 skeins of wool at a cost of $4 pere skein and 0.75 gallons of dye at a cost of $8 per gallon. All other materials are T indirect. At the beginning of the year Xavier has an inventory of 462,000 skeins of manufacturing labor-hours to weave a rug at a budgeted rate of $15 per hour it wool at a cost of $1,062,600 and 4,200 gallons of dye at a cost of $25,200. Target budg ending inventory of wool and dye is zero. Xavier uses the FIFO inventory cost flow B(Click the icon to view the budgeted overhead costs.) method ner malelane s b eo use d sten w ato contofs n o wew h mmoton There is no direct manufacturing labor cost for dyeing. Xaier budgets 55 direct 0.25 machine-hours to dye each skein in the dyeing process Read the requirements Requirement 1. Prepare a direct material usage budget in both units and dollars Begin with the physical units portion, then prepare the cost budget portion of the direct material usage budget Direct Material Usage Budget in Quantity and Dollars Material Wool Dye Total Physical Units Budget Direct materials required for skeins gal Blue rugs Cost Budget Available from beginning direct materials inventory Choose from any list or enter any number in the input fields and then congtinue to the next

Answer & Explanation Solved by verified expert

See Answer