Soft and Silky, Inc. manufactures bedding sets. The budgeted production is for 53,000 comforters during the upcoming year. Each comforter requires 6 yards of material. The estimated January 1, 20Y7, beginning inventory is 31,000 yards. The desired ending balance is 30,000 yards of material. If the material costs $1.50 per yard, determine the materials budget for the year.

The materials budget for the year = $475,500

Explanation:

let us first lay out the particulars

beginning inventory = 31,000 yards

ending balance = 30,000 yards

amount sold from beginning inventory  =  31,000 - 30,000 = 1,000 yards

budgeted production = 53,000 comforters

requirement for each comforter = 6 yards

total budgeted yards to be required = (requirement for each comforter) × (number of comforters)

= 6 × 53,000 = 318,000 yards

Note that required number of yards to be required during the year = 318,000 yards, but we have 1,000 yards available from the beginning inventory, as shown above, therefore, the number of yards to be produced is calculated as follows:

number of yards to be produced = (required number of yards) - ( number of yards from beginning inventory)

= 318,000 - 1000 = 317,000 yards.

Next, we are told that material cost per yard = $1.50

1 yard = $1.50

∴ 317,000 yards = 1.50 × 317,000 = $475,500

Therefore the materials budget for the year = $475,500

answer(d) all of the choices are correct;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.