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Noche Building Blocks is preparing its budget for 2008. Production for the first quarter will be 600,000 blocks.
Noche Building Blocks is preparing its budget for 2008. Production for the first quarter will be 600,000 blocks. Production for the subsequent quarters will be 625,000 blocks, 700,000 blocks, and 850,000 blocks.
Each block requires 3.0 pounds of the raw material, blockrock, and each pound of blockrock costs $0.50. Noche Building Blocks will have 325,000 pounds of blockrock on hand at the end of 2007 and wants to have 500,000 pounds of blockrock in inventory at the end of 2008. Ending inventory for blockrock for the first, second, and third quarters will be 340,000 pounds, 360,000 pounds and 450,000 pounds.
Prepare the direct materials budget by quarter and in total for the year 2008.
Please Show All Steps. Thank You.
