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18 September, 08:42

Sleep Master, Inc. manufactures bedding sets. The budgeted production is for 57,000 comforters in 2017. Each comforter requires 6 yards of material. The estimated January 1, 2017, beginning inventory is 31,000 yards. The desired ending balance is 27,000 yards of material. If the material costs $1.50 per yard, determine the materials budget for 201

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  1. 18 September, 09:02
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    Total cost = $507,000

    Explanation:

    Giving the following information:

    The budgeted production is for 57,000 comforters in 2017. Each comforter requires 6 yards of material. The estimated January 1, 2017, beginning inventory is 31,000 yards. The desired ending balance is 27,000 yards of material. If the material costs $1.50 per yard, determine the materials budget for 201.

    Material budget:

    Production = 57,000*6 = 342,000 yards

    Ending inventory = 27,000

    Beginning inventory = (31,000)

    Total = 338,000

    Total cost = 338,000*1.5 = $507,000
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