Magnolia, Inc., manufactures bedding sets. The budgeted production is for 17,700 comforters this year. Each comforter requires 7 yards of material. The estimated January 1 beginning inventory is 4,870 yards with the desired ending balance of 5,400 yards of material. If the material costs $4.70 per yard, determine the materials budget for the year. $

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Business

Helen Clark

26 February, 22:40

Magnolia, Inc., manufactures bedding sets. The budgeted production is for 17,700 comforters this year. Each comforter requires 7 yards of material. The estimated January 1 beginning inventory is 4,870 yards with the desired ending balance of 5,400 yards of material. If the material costs $4.70 per yard, determine the materials budget for the year. $

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Kierra Mooney · Answer 1

Calculation of materials budget for 2012

Budgeted production units (A) 17,700

Material Required per unit (Yards) (B) 7

Total Material required (C) = A*B (Yards) 123,900

Add: Desired Ending material inventory 5,400

Less: Beginning Material inventory (4,870)

Material to be purchased (Yards) 124,430

Price Per yard $4.70

Cost of Material to be purchased $584,821