Direct Materials Budget

[@JojoRabbit0861]

2:49 - We want to have an ending inventory of 10% of the next quarter's production needs (pounds). Q2 - 831,000*.10= 83,100 desired to end the inventory of raw materials for Q1. Similar to the production budgets desired ending inventory.

[@georgechalapas8515]

Thought I would share this, but one thing that helped me in understanding the flow in which the budget is calculated was breaking down the first half by strictly understanding how much of the DM is needed in units - and the second half being cost associated with purchasing the needed DM.

[@ppabn081]

You are better than my school teacher! Thank you so much!

[@craigobsessedx]

Boyy u the reason im not supplemening in uni

[@jayzonsuniga6803]

You have bicycles as an example from your previous videos. Now, I'm having a hard time understanding this video. Can you provide the link for the Orange product Sales budget and Production Budget? Thanks you

[@gzx.5945]

How did you come up with the 831,000?

[@rubybrown4604]

very helpful thanks. but just wondering how you got the desired ending inventory for Q4

[@wallemeister5168]

I have the same question. Besides that, great video! You were very helpful, thank you.

[@jonyfeelgood]

The information for this calculation would have been given in the preliminary information before you really started the problem. For this example, you can plug some numbers on the previous desired ending inventory balances and find that ending inventory goal is 30% of the next quarter's unit production requirements. So, 22,500 units ending inventory is 30% of whatever Q1 of next year's production requirement will be.

[@Matt_7896]

The problem usually provides it. In this video, he said, for the sake of discussion, it was assumed.

[@Nina.k]

What if production is a purchase budgeting and there's no information about Direct materials. Can I consider COGS as DM? It mentions Cost of Goods sold averages 70% of sales. Can this be considered as Direct Material budgeting? in a service-based internet company that runs the firm using a warehouse distribution model.

[@ramamaamallan392]

how did we get opening balance of the inventory? explain that and do the sum, your just keep on running .

[@ikhlasulzikri6404]

from Direct Material Budget solution video on the quarter 4 section didn't give us any information about how to calculate them (especially on desired ending inventory of raw materials). I still don't get it, can someone help me to solve that section?

[@jessicamarcus245]

Where do you get the Beginning Inventory of 21 000 from?

[@Out1sSaidAsOat]

It's usually stated in the question. Also if its a new company, it would then be 0.

[@JO-xxii]

i still don't get it

[@muzik0586]

😂😂

[@miladhabibi6826]

first video of yours which i couldnt understand entirely

[@vica4213]

can i say i love you? cause i actually do.

[@andrewgillim5952]

The educational quality dropped like crazy from 2014 to 2018. Kinda sad