A farm company manufactures and sells a pesticide called snare. The following data are avail for preparing budgets for snare for the 1st two quarters of 2013 (I’m stuck on this part).
Direct materials: Each bag of Snare requires 5 pounds of Gumm at a cost of $4 per pound and 8 pounds of Tarr at $1.50 per pound. The direct materials budget for Tarr shows the cost of Tarr purchases to be $298000 in 1st Q, and $427,000 in 2nd Q.
Types of inventory 1st Q 2nd Q 3rd Q
Snare 8400 12200 18200
Gumm (lbs) 9200 10300 13100
Tarr (lbs) 14200 20400 25400
The required production units are: 1st Quarter, 32300 and 2nd Quarter, 49500.
My question is how do i find the direct materials per unit in the direct materials budget?
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