LO 3 Direct Materials Purchases Budget door units The units

LO 3 Direct Materials Purchases Budget door units. The units include hinges, EAA. Eco Door Company manufactures garage door pancls, and other hardware. The controller has provided the information that follows. Part Hinges Door panels Other hardware Units Needed 4 sets per door 4 panels per door 1 lock per door 1 handle per door 2 roller tracks per door 8 rollers per door Cost $6.00 per set $27.00 per panel $31.00 per lock $22.50 per handle $16.00 per set of 2 roller tracks $4.00 per roller Prepare a direct materials purchases budget for the first quarter of the year based on the budgcted production of 25,000 garage door units. Assume no beginning or ending quantities of direct materials inve ntory

Solution

Direct Material Purchase Budget Part Units Cost Number of doors Hindges 4 $6.00 25000 $6,00,000.00 Panel 4 $27.00 25000 $27,00,000.00 Others 1 $31.00 25000 $7,75,000.00 Handle 1 $22.50 25000 $5,62,500.00 Roller Tracks 2 $16.00 25000 $8,00,000.00 Roller 8 $4.00 25000 $8,00,000.00 $62,37,500.00