You are on page 1of 2

The Svelte Jeans Company produces two different types of jeans.

One is called the %u201CSimple Life%u201D and


Life%u201D. The company sales budget estimates that 350,000 of the Simple Life Jeans and 200,000 of the Fancy L
Production Budget requires 353,500 units of Simple Life jeans and 196,000 Fancy Life jeans be manufactured. The
material, a zipper, and 25 yards of thread. The Fancy Life jeans require 4.5 yards of denim material, a zipper, and
material costs $3.25, the zipper costs $.75 each, and the thread is $.01 per yard. There is enough material to make
of the year. The desired amount of materials left in ending inventory is to have enough to manufacture 3,500 jean

Prepare a Direct Materials Purchases Budget. If required, round your answers to two decimal please show work.

Svelte Jeans Company


Direct Materials Purchases Budget
For the year ending December 31,20XX
Denim Total ( Yards) Zippers ( Each)
Units Required;
Simple 1,060,500 353,500
Fancy 882,000 196,000
Desired Ending Inventory ;
Simple 10,500 3,500
Fancy 15,750 3,500
Total 1,968,750 556,500
Less Beginning Inventory ;
Simple 6,000 2,000
Fancy 9,000 2,000
Total Amount to be Purchased 1,953,750 552,500
Unit Price 3 1
Total Direct Materialsto be Purchased 6,349,688 414,375
e %u201CSimple Life%u201D and the other is called the %u201CFancy 
eans and 200,000 of the Fancy Life will be sold during 20xx. The 
ife jeans be manufactured. The Simple Life jeans require 3 yards of denim 
f denim material, a zipper, and 40 yards of thread. Each yard of denim 
here is enough material to make 2,000 jeans of each type at the beginning 
nough to manufacture 3,500 jeans of each type.

wo decimal please show work.

Thread ( Yards)

8,837,500
7,840,000

87,500
140,000
16,905,000

50,000
80,000
16,775,000
0
167,750 6,764,063