Question

Assume that Toy Craft makes ragdolls. Each ragdoll requires 12 square feet of fabric. If the number of dolls to be produced during the quarter is 19,000, the desired ending inventory of fabric is 11,400 square feet, the beginning inventory of fabric is 22,800 square feet, and the cost of the fabric is $9 per square foot, what is the total cost of fabric purchases?

Answer 1

Answer:

The total cost of fabric purchases is $1,949,400

Explanation:

Numbere of units produced                19000  

RM required per unit                    12  

Total RM needs                        228000  

Add: Ending inventory of RM          11400  

Total needs                                239400  

Less: Beginning inventory of RM       22800  

Budgeted Purchase units               216600  

Price per unit                                     9  

Budgeted Purhase in                               $1949400  

Therefore, The total cost of fabric purchases is $1,949,400