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Author Question: Piper Pasta Company produces a hand-processed gourmet pasta that is made with organic flour. Five ... (Read 84 times)

WWatsford

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on: Jan 5, 2020
Piper Pasta Company produces a hand-processed gourmet pasta that is made with organic flour.  Five (5) pounds of organic flour are required per batch of gourmet pasta.  The organic flour costs $2.40 per pound.  The company needs to have 30% of the following month's production needs of organic flour in ending inventory so it is on hand to start each month.   A total of 180 pounds of organic flour are expected to be on hand on April 1.  Budgeted production of the gourmet pasta for the month from April through July follow:

Number of batches of pasta to be produced in April600
Number of batches of pasta to be produced in May750
Number of batches of pasta to be produced in June800
Number of batches of pasta to be produced in July700

Required:
Prepare a direct materials budget for organic flour for each of the months in the second quarter and for the second quarter in total.  Include both the quantity of flour to be purchased and the cost of the purchases in each month.
Managerial Accounting, Canadian Edition ¦ Braun, Tietz, Pyper ¦ 2nd Edition
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Marked as best answer by WWatsford on Jan 5, 2020

cadimas

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Reply #1 on: Jan 5, 2020
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WWatsford

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Reply 2 on: Jan 5, 2020
Wow, this really help

komodo7

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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