Question

can you please help me with managerial accounting problem

Beckett Industries manufactures a popular interactive stuffed animal for children that requires two computer chips inside each toy. The company pays $4 for each computer chip. To help to guard against stockouts of the computer chip, Beckett Industries has a policy that states that the ending inventory of computer chips should be at least 20% of the following month's production needs. The production schedule for the first four months of the year is as follows: (Click the icon to view the production schedule.) Requirement Prepare a direct materials budget for the first quarter that shows both the number of computer chips needed and the dollar amount of the purchases in the budget. Prepare the direct materials budget by first calculating the total quantity needed, then complete the budget. Beckett Industries i Data Table Quarter 14,800 Stuffed animals to be produced March 4,800 2 9,600 2 2 January ..... 5,800 February .... Direct Materials Budget For the Months of January through March January February Units to be produced 5,800 4,200 Multiply by: Quantity of direct materials needed per unit Quantity needed for production 11,600 8,400 Plus: Desired ending inventory of direct materials 1,680 Total quantity needed 13,280 10,320 Less: Beginning inventory of direct materials (2320) (1680) Quantity to purchase 10960|| Multiply by: Cost per unit 4,200 29,600 1,600 1.920 1,600 March ...... 4,800 4,000 April ........ 11,200 (1920) 31,200 (2320) Print 8640] Done 9280 Print 28880 Done Total cost of direct material purchases

Answer 1

Solution

Beckett Industries
Direct materials Budget
For the month of January through March
	January	February	March	Quarter
Units to be Produced	5800	4200	4800	14800
Multiply by: Quanltity of Direct material needed per Unit	2	2	2	2
Quantity needed for production	11600	8400	9600	29600
Plus: Desired ending Inventory of direct material	1680	1920	1600	1600
Total Quantity needed	13280	10320	11200	31200
Less: Beginning Inventory of direct material	2320	1680	1920	2320
Quantity to purchase	10960	8640	9280	28880
Multiply by: Cost per unit	$ 4	$ 4	$ 4	$ 4
Total cost of direct material purchases	$ 43,840	$ 34,560	$ 37,120	$ 115,520