Seranno publishers inc budgeted production of 47000 diaries, Accounting Basics

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Seranno publishers inc budgeted production of 47000 diaries

Problem

Seranno Publishers Inc. budgeted production of 47,000 diaries in 2016. Paper is required to produce a diary. Assume 62 square yards of paper are required for each diary. The estimated January 1, 2016, paper inventory is 117,000 square yards. The desired December 31, 2016, paper inventory is 160,000 square yards. If paper costs $0.08 per square yard, determine the direct materials purchases budget for 2016.

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Accounting Basics: Seranno publishers inc budgeted production of 47000 diaries

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