Business, 24.11.2021 03:10, isabella234

Butler Manufacturing manufactures two products, (1) Regular and (2) Deluxe. The budgeted units to be produced are as follows: Units of Product
2022 Regular Deluxe Total
July 10,000 15,000 25,000
August 6,000 10,000 16,000
September 9,000 14,000 23,000
October 8,000 12,000 20,000

It takes 3 pounds of direct materials to produce the Regular product and 6 pounds of direct materials to produce the Deluxe product. It is the company's policy to maintain an inventory of direct materials at the end of each month equal to 30% of the next month's production needs for the Regular product and 20% of the next month's production needs for the Deluxe product. Direct materials inventory on hand at June 30 were 10,530 pounds for the Regular product and 18,000 pounds for the Deluxe product. The cost per pound of materials is $5 for the Regular product and $8 for the Deluxe.

Required:
Prepare separate direct materials budgets for each product for the third quarter of 2022.

Answers: 2

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Butler Manufacturing manufactures two products, (1) Regular and (2) Deluxe. The budgeted units to be...