Sunland Furniture Inc. expects to produce 4750 finished goods (FG) units (in tables) in October and 5250 FG units (in tables) in November. Each table needs 2 meters of direct material (DM) in wood that costs $4 (per meter of wood). Target ending DM inventory is 10% of the next month's total production needs in DM (meters of wood). There is DM of 700 meters of wood in inventory on September 30. Total budgeted cost of DM purchases of wood during October will be O $39200. O $39400. O $9850. O $9150.

Sunland Furniture Inc. expects to produce 4750 finished goods (FG) units (in tables) in October and 5250 FG units (in tables) in November. Each table needs 2 meters of direct material (DM) in wood that costs $4 (per meter of wood). Target ending DM inventory is 10% of the next month's total production needs in DM (meters of wood). There is DM of 700 meters of wood in inventory on September 30. Total budgeted cost of DM purchases of wood during October will be O $39200. O $39400. O $9850. O $9150.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 5EB: Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and...

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