Wildhorse Thaustries has adopted the following production budget for the four quarters of 2022: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Units 6,200 8,200 8,900 9,900 Each unit requires 3 kg of raw materials costing $6 per kilogram. On December 31, 2021, the ending raw materials inventory was 1,860 kg. Management wants to have a raw materials inventory at the beginning of each quarter equal to 30% of the current quarter's production requirements. The production budget for the first quarter of 2023 will be 11,800 units. Prepare a direct materials purchases budget by quarters for 2022.

Wildhorse Thaustries has adopted the following production budget for the four quarters of 2022: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Units 6,200 8,200 8,900 9,900 Each unit requires 3 kg of raw materials costing $6 per kilogram. On December 31, 2021, the ending raw materials inventory was 1,860 kg. Management wants to have a raw materials inventory at the beginning of each quarter equal to 30% of the current quarter's production requirements. The production budget for the first quarter of 2023 will be 11,800 units. Prepare a direct materials purchases budget by quarters for 2022.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...

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