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21 October, 08:55

Sleep master, inc. manufactures bedding sets. the budgeted production is for 57,000 comforters in 2013. each comforter requires 6 yards of material. the estimated january 1, 2013, beginning inventory is 31,000 yards. the desired ending balance is 27,000 yards of material. if the material costs $1.50 per yard, determine the materials budget for 2013.

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  1. 21 October, 09:11
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    Total Material cost = $507,000

    Explanation:

    Material budget shows the total budgeted material cost for a specific period.

    Sleep master, inc.

    Direct Material Budget

    December 31, 2013

    Budgeted production units 57,000

    yards required per comforter * 6

    Materials needed for production = 342,000 yards

    Add: Ending Material Inventory = 27,000 yards

    Total Material units required = 369,000 yards

    Less: Beginning Materials = (31,000) yards

    Material used = 338,000 yards

    Cost per yard * $1.50

    Total Material cost = $507,000
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