Brutus Company manufactures glass bottles. The company expects to sell 500,000 bottles next year. The budgeted ending inventory this year is 15,000 bottles and the desired ending inventory for next year is 12,000 bottles. It takes 5 pounds of sand to produce one bottle. The ending inventory of sand this year is expected to be 200,000 pounds, and the desired ending inventory next year is 100,000 pounds. The amount of direct material purchases is expected to be:
Proposal Budget=E.Sales+Desire units-actual units*per unit cost =500000+12000-15000=497000*5=2485000 =2485000+100000-200000=2385000
355 MCQ for effective preparation of the test of Cost and Management Accounting of Accounting section.
Read the MCQ statement: Brutus Company manufactures glass bottles. The company expects to sell 500,000 bottles next year. The budgeted ending inventory this year is 15,000 bo .... xpected to be: , keenly and apply the method you have learn through the video lessons for Cost and Management Accounting to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 166-168.