Calculate the total cost of material a budgeted

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Question - Cassidy's Company makes and sells a single product called a Bik. It takes four yards of Material A to make one Bik. Budgeted production of Biks for the next three months is as follows:

Budgeted Biks to be Produced -

February - 21,000 units

March - 26,000 units

April - 33,000 units

The company wants to maintain monthly ending inventories of Material A equal to 29% of the next month's production needs. Material A costs $1.75 per yard. The company is in the process of preparing a direct materials purchases budget.

Calculate the total cost of material A budgeted to be purchased in March.

Reference no: EM132182019

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