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Homework answers / question archive / Glaziers Professional Corp
Glaziers Professional Corp. manufactures customized frames for pictures and certificates. Sales for August are expected to be 10,000 units of various sizes. The average frame requires:
Wood: 4 metres
Glass: One square metre
Backing: Two square metres
Beginning inventory includes 1,500 metres of framing, 500 square metres of glass, and 500 square metres of backing. Current prices are $0.30 per metre for framing, $6.00 per square metre for glass, and $2.25 per square metre of backing. Ending inventory should be 150% of beginning inventory. Purchases are paid for in the same month acquired.
Required:
a) Determine the quantity of framing, glass, and backing required to be purchased in August.
b) Determine the total costs of direct materials for August purchases.
a) Purchase quantity = Materials requirements for 10,000 units + Ending inventory - Beginning inventory
1. Calculation of materials requirement for 10,000 units:
| For an average frame | For 10,000 units | |
| wood(framing) | 4 metres | 4*10,000 = 40,000 metres |
| Glass | 1 square metre | 1*10,000 = 10,000 square metres |
| Backing | 2 square metres | 2*10,000 = 20,000 square metres |
2. Calculation of ending inventory (150% of beginning inventory):
| Beginning inventory | Ending inventory needed: | |
| Framing | 1,500 metres | 1,500*150% = 2,250 metres |
| Glass | 500 Square metres | 500*150% = 750 square metres |
| Backing | 500 Square metres | 500*150% = 750 square metres |
3. Calculation of purchase quantity for august = materials required for 10,000 units + Ending inventory - Beginning inventory
Framing = 40,000 + 2,250 - 1,500 = 40,750 metres
Glass = 10,000 + 750 - 500 = 10,250 square metres
Backing = 20,000 + 750 - 500 = 20,250 square metres
b) Total costs of direct materials purchased in August:
| Direct materials | Purchase quantity | Rate per unit of material | Total cost |
| Framing | 40,750 metres | $0.30 per metre | $0.30 * 40,750 = $12,225 |
| Glass | 10,250 square metres | $6.00 per square metre | $6.00 * 10,250 = $61,500 |
| Backing | 20,250 square metres | $2.25 per square metre | $2.25 * 20,250 = $45,562.5 |
| Total costs of direct materials purchased in august (Framing + Glass + Backing) | $119,287.5 |
