Brown Inc'S Production Budget for Product X for the Year Ended

question 129

Essay

Brown Inc.'s production budget for Product X for the year ended December 31 is as follows: $\begin{array}{lr}&\underline{\text { Product X }}\\\text { Sales } & 640,000 \text { units } \\\text { Plus desired ending inventory } & \underline{85,000}\\\text { Total } & 725,000 \\\text { Less estimated beginning inventory, Jan. } 1 &90,000 \\\text { Total production }&\underline{\mathbf{6 3 5}, 000}\end{array}$ ?
In Brown's production operations, Materials A, B, and C are required to make Product X.The quantities of direct materials expected to be used for each unit of product are as follows:
Product X
Material A .50 pound per unit
Material B 1.00 pound per unit
Material C 1.20 pound per unit
The prices of direct materials are as follows:
Material A $0.60 per pound
Material B $1.70 per pound
Material C $1.50 per pound
Prepare a direct materials purchases budget for Product X.

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