45000

41000

49000

38000

47000

6

5
54000

0.2

Name:
Date:
Instructor:
Course:
Managerial Accounting,
4
th
Edition by James Jiambalvo
Solving Managerial Accounting Problems Using Microsoft Excel
for Windows Templates
by Rex A Schildhouse
Exercise E10-8 Direct Materials Purchases Budget
Roehler Industrial has estimated that production for the next five quarters will be:
Production Information
Quarter 1, 2011
units
Quarter 2, 2011
Quarter 3, 2011
Quarter 4, 2011
Quarter 1, 2012
Finished units of production require
pounds of raw material per unit. The raw material cost
is
per pound. There are
pounds of raw material on hand at the beginning of
quarter 1, 2012. Roehler desires to have
of next quarter’s material requirements on hand at the
end of each quarter.
Required:
Prepare quarterly direct materials purchases budgets for Roehler Industries for 2011.
ROEHLER INDUSTRIES
Direct Materials Purchases Budget
For the Year Ending December 31, 2011
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Year
Units to be produced
Number
Amount
Cost of raw material needed for production
Formula
Add desired ending inventory of raw mtrl
Total material needed
Less beginning inventory of raw material
Required raw material purchases