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.
