Two Yards of a Fabric Are Required for Each Blouse

question 19

Essay

Two yards of a fabric are required for each blouse produced by Northern Shirt Corporation.The cost of the fabric is $4 per yard.Budgeted production of blouses is given below for the fourth quarter and the first month of the following quarter. To prevent against stock outs of the fabric,the company maintains an ending inventory each month equal to 10% of the next month's production needs.The beginning inventory of the fabric in October will be 3,600 yards.
Required:
Prepare a direct materials budget for the fabric,by month and in total for the fourth quarter.Be sure to include both the quantity to be purchased and its cost for each month.

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Definitions:

Explanatory

Pertaining to a variable in a statistical model that is used to explain or predict changes in a response variable.

Response

In statistics, the answer or reaction to some stimulus or experiment; in communication, it's the reply or reaction to a message or question.

Air Pressure

The force exerted onto a surface by the weight of the air above that surface in the atmosphere of Earth.

Altitude

The height of an object or point in relation to sea level or ground level.