Question

Question 18 0.25 points Save Answer Whistle Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget: October November December Units to be produced 4900 5050 5720 Whistle Works sells each whistle for $8. It takes 4 ounces of metal to produce each whistle at a cost of $0.70 per ounce. They prefer to have 10% of materials required for the following month's production in ending inventory as well. What is the total cost of direct materials for October to meet production needs? (Round the final answer to the nearest dollar.) $13,762 0 $13,678 0 $4046 0 $3430

Answer 1

Ans.	Option 1st   $13,762
	WHISTLE   WORKS
	Direct Materials Budget
	For the Month of October
	Particulars	October
	Budgeted production (units)	4900
	(X) Materials requirement per unit	4
	Materials needed for production	19600
	Add: budgeted ending inventory	2020
	Total materials requirements	21620
	Less: Budgeted beginning inventory	-1960
	Materials to be purchased	19660
	(X) Direct materials per unit	$0.70
	Total budgeted direct materials	$13,762
	*Calculations of materials needed for production for the month of November:
	Particulars	November
	Budgeted production (units)	5050
	(X) Materials requirement per unit	4
	Materials needed for production	20200
	*Ending inventory of October = 10% of materials needed for November
	20,200 * 10%
	2020
	*Beginning inventory of October = Ending inventory of September = 10% of materials needed for October
	19,600 * 10%
	1960