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19. The Svelte Jeans Company produces two different types of jeans. One is called the "Simple Life" and the other is called the "Fancy Life". The Production Budget requires 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; the Fancy Life jeans require 4.5 yards of denim material. Each yard of denim material costs $3.25. There is 15,000 yards of denim on hand at the beginning of the year. The desired amount of ending inventory is 22,750 yards. Prepare a Direct Materials Purchases Budget for denim.

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Answer:

See explanation section

Explanation:

                            Svelte Jeans Company

                           Direct Materials Budget

                                                      Simple Life    Fancy Life        Total

Budgeted production (unit)          353,500         196,000         549500

Denim Material per unit                   × 3                    × 4.5                        

Budgeted Material needed        1,060,500        882,000      1,942,500

Add: Ending materials needed       22,750           22,750          45,500

Total need                                   1,063,250         904,750      1,988,000

Less: Beginning materials need     15,000            15,000           30,000

Total direct materials                1,048,250         889,750      1,958,000

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