#### Preparing a Direct Materials Purchases Budget Tulum Inc

Subject:AccountingPrice:4.87 Bought7

# Preparing a Direct Materials Purchases BudgetTulum Inc. makes a Mexican chocolate mix sold in 4-pound boxes. Planned production in units for the first 3 months of the coming year is: January 24,700 February 22,000 March 30,200 Each box requires 4.2 pounds of chocolate mix and one box. Company policy requires that ending inventories of raw materials for each month be 10% of the next month’s production needs. That policy was met for the ending inventory of December in the prior year. The cost of 1 pound of chocolate mix is \$1.50. The cost of one box is \$0.10.Required:1. Calculate the ending inventory of chocolate mix in pounds for December of the prior year and for January and February. What is the beginning inventory of chocolate mix for January? Ending inventory for December pounds Ending inventory for January pounds Ending inventory for February pounds Beginning inventory for January pounds 2. Prepare a direct materials purchases budget for chocolate mix for the months of January and February. Tulum Inc. Direct Materials Purchases Budget - Chocolate mix in Pounds: For the Months of January and February   January February Production in units     Pounds per unit     Pounds for production     Desired ending inventory     Needed     Less: Beginning inventory     Purchases     Price per pounds \$ \$ Dollar purchases \$ \$ 3. Calculate the ending inventory of boxes for December of the prior year and for January and February. Round your answers to the nearest whole unit. Ending inventory for December units Ending inventory for January units Ending inventory for February units 4. Prepare a direct materials purchases budget for boxes for the months of January and February. Tulum Inc. Direct Materials Purchases Budget - Boxes For the Months of January and February   January February Production in units     Boxes per unit     Boxes for production     Desired ending inventory     Needed     Less: Beginning inventory     Purchases     Price per box \$ \$ Dollar purchases \$ \$

## 4.87 USD

### Option 2

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