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21 November, 05:13

Assume that Toy Craft makes ragdolls. Each ragdoll requires 12 square feet of fabric. If the number of dolls to be produced during the quarter is 19,000, the desired ending inventory of fabric is 11,400 square feet, the beginning inventory of fabric is 22,800 square feet, and the cost of the fabric is $9 per square foot, what is the total cost of fabric purchases?

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  1. 21 November, 08:53
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    The total cost of fabric purchases is $1,949,400

    Explanation:

    Numbere of units produced 19000

    RM required per unit 12

    Total RM needs 228000

    Add: Ending inventory of RM 11400

    Total needs 239400

    Less: Beginning inventory of RM 22800

    Budgeted Purchase units 216600

    Price per unit 9

    Budgeted Purhase in $1949400

    Therefore, The total cost of fabric purchases is $1,949,400
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