Master Budget and Responsibility Accounting Direct material budget Dawso n Co. p
ID: 2580932 • Letter: M
Question
Master Budget and Responsibility Accounting Direct material budget Dawso n Co. produces wine. Dawson purchases empty glass bottles from an outside vendor. The company expects: 2,535,000 two-liter bottles of Chablis Production Target ending inventory77,000 glass bottles Beginning inventory For simplicity, ignore breakage. 54,000 glass bottles Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong Requirement Compute the number of bottles to be purchased in 2018Explanation / Answer
No of bottles required = 2,535,000
No of bottles required to be purchased
Requirement - opening stock + closing stock
= 2,535,000 - 54,000 + 77,000
= 2,558,000 Bottles