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Milligan Manufacturing Company produces and sells garden tools. The company has developed the ...

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Milligan Manufacturing Company produces and sells garden tools. The company has developed the ...

Milligan Manufacturing Company produces and sells garden tools. The company has developed the following production plan for its new electric trimmer.

January

February

March

April

Budgeted production (in units)

4,000

5,000

6,000

Each unit requires three feet of metal tubing. The company wishes to have ending inventory of metal tubing equal to 110% of its next month's production needs, plus an additional 100 feet. January's beginning inventory meets this requirement. Milligan's standard cost per foot is $2.80.

Required

Prepare the 1st quarter direct materials purchases budget for metal tubing.

Textbook

Managerial Accounting

Edition: 4^th

Author: Davis

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