Home / Business & Management / Finance & Accounting / Accounting for Today’s Dynamic World / Direct Materials Budget Example
Direct Materials Budget Example
Explore direct materials budget example.
The Direct Materials Budget
- At Royal Company, five pounds of material are required per unit of product.
- Management wants materials on hand at the end of each month equal to 10% of the following month’s production.
- On March 31, 13,000 pounds of material are on hand. Material cost is $0.40 per pound.
Example
Over to you
Review the example and make sure to understand how to create a Direct Material budget.
Reach your personal and professional goals
Unlock access to hundreds of expert online courses and degrees from top universities and educators to gain accredited qualifications and professional CV-building certificates.
Join over 18 million learners to launch, switch or build upon your career, all at your own pace, across a wide range of topic areas.
