The Jeans Company produces two different types of jeans. One is called the “Simple Life” and the other is called the “Fancy Life”. The company sales budget estimates that 350,000 of the Simple Life jeans and 200,000 of the Fancy Life will be sold during 20--. The Production Budget required 353,500 units of Simple Life jeans and 196,000 Fancy Life jeans be manufactured. The Simple Life jeans require 3 yards of denim material, a zipper, and 25 yards of thread. The Fancy Life jeans require 4.5 yards of denim material, a zipper, and 40 yards of thread. Each yard of denim material cost $3.25, the zipper costs $.75 each, and the thread is $.01 per yard. There is enough material to make 2,000 jeans of each type at the beginning of the year. The desired amount of materials left in ending inventory is to have enough to manufacture 3,500 jeans of each type. Prepare a Direct Materials Purchase Budget.
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Verified answer
Wouldn't you just multiply every item by its price in separate categories?
like under the "simple life" you mult. 3 x $3.25, 1x$.75, 25x$.01 and then add that which is $10.75 each pair of jeans. then mult. by the quantity of jeans you need. then do the same for the "fancy life".
That is my wild guess, ive never had to do this before.
good luck :)