question archive AMI Corporation produces a single product that requires three yards of direct materials to produce each unit
AMI Corporation produces a single product that requires three yards of direct materials to produce each unit
Subject:AccountingPrice:4.89 Bought18
AMI Corporation produces a single product that requires three yards of direct materials to produce each unit. AMI has the following budgeted information related to this product for the next five months: units to cast of direct laterials be produced to be purchased August 35 , 533 $379, 330 September ? $458, 2?? IIllctolser 33,433 $431,4?? November 2?,633 ?' December 28,533 ? MI wants to maintain monthly ending inventories of direct materials equal to 8896 of the next month's production needs. The cost of direct materials is $5 per yard. Calculate the nI-ber of units budgeted to he produced in SepteIIJer.
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22,490
Units of material purchases = 468,270 / 5 = 93,654 units of materials
Units of material purchases = Budgeted product production needs + Desired ending - Beginning
93,654 = Budgeted product production needs + (80% x (33,400 x 3) - (80% x Budgeted product production needs September)
93,654 = Budgeted product production needs + 80,160 - 0.80 Budgeted product production needs
Budgeted product production needs - 0.80 Budgeted product production needs = 93,654 - 80,160
0.20 Budgeted product production needs = 13,494
Budgeted product production needs = 13,494 / 0.20
Budgeted product production needs = 67,470 materials
Budgeted units to be produced = 67,470 / 3 = 22,490 units
