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Please get me the incorrect answer that in red !!! To the correct ones ! 2) plea

ID: 2398665 • Letter: P

Question

Please get me the incorrect answer that in red !!! To the correct ones !

2) please help with alll !!! short ones Thank You.
eWitt Industries has adopted the following production budget for the first 4 months of 2017. Month January February Units Month Units 10,110 March 5,330 8,130 April 4,120 Each unit requires 5 pounds of raw materials costing $3 per pound. On December 31, 2016, the ending raw materials inventory was 9,160 pounds wants to have a raw materials inventory at the end of the month equal to 20% of next month's productort requirements. Prepare a direct materials purchases budget by month for the first quarter DEWITT INDUSTRIES Direct Materials Purchases Budget For the Quarter Ending March 31, 2017 anua FebruaryMarch Units to be Produced 10,110 8,130 5,330 | Direct Materials Per Unit Total Pounds Needed for Production Add : Desired Ending Direct Materials Total Cost of Direct Materials Purchases: Less Beginning Direct Materials 50550 40650 26650 8130 5330 4120 45980 30770 4,120 (8130) (5330)

Explanation / Answer

1)

irect material budget

2)

Contribution margin ratio = 100-66.4 = 33.6%

Contribution margin per unit = 5.2*33.6% = $1.747

Break even unit = 681000/1.747 = 389811 Units

Break even sales = 389811*5.2 = $2027017

2) Margin of safety = 2360000-2027017 = $332983

Margin of safety ratio = 332983*100/2360000 = 14%

January February march Production units 10110 8130 5330 Raw material per unit 5 5 5 Raw material for production 50550 40650 26650 Add: Desired ending inventory 8130 5330 4120 Total needs 58680 45980 30770 Less: beginning inventory (9160) (8130) (5330) Direct material purchase 49520 37850 25440 Cost per pound 3 3 3 Direct material purchase cost 148560 113550 76320