Berry Company Manufactures Two Products, (1) Regular and (2) Deluxe

question 84

Essay

Berry Company manufactures two products, (1) Regular and (2) Deluxe. The budgeted units to be produced are as follows:
It takes 3 pounds of direct materials to produce the Regular product and 5 pounds of direct materials to produce the Deluxe product. It is the company's policy to maintain an inventory of direct materials on hand 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 9,000 pounds for the Regular product and 15,000 pounds for the Deluxe product. The cost per pound of materials is $5 Regular and $7 Deluxe.
Instructions
Prepare separate direct materials budgets for each product for the third quarter of 2010.

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Definitions:

Subjective Distress

The personal and individual experience of discomfort, pain, or suffering, which can vary greatly from one person to another and is not always visible to outsiders.

Case Note Documentation

The practice of recording details of a client's care, treatment, and progress in a structured manner for professional use.

Continual Self-reflection

The ongoing process of introspection and analysis of one's thoughts, actions, and emotions to foster personal growth.

Acquisition Of Skills

The process of learning or gaining new abilities or expertise through practice, study, or experience.