Becker Bikes manufactures tricycles. The company expects to sell 550 units in May and 680 units in June. Beginning and endingfinished goods for May are expected to be 195 and 160 units, respectively. June's ending finished goods are expected to be 170 units.Each unit requires 3 wheels at a cost of $25 per wheel. Becker requires 20 percent of next month's material production needs onhand each month. July's production units are expected to be 650 units.Compute Becker's direct materials purchases budget with respect to wheels for May and June.Budgeted cost of wheels purchasedMayJune

MayJuneBudgeted cost of wheels purchased$41,250 $51,150 Explanation: Step 1: Construct the…

Answered: Becker Bikes manufactures tricycles.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Pridgeon Corporation plans to sell 23,000 units during August. If the company has 8,000 units on hand at the start of the month, and plans to have 9,000 units on hand at the end of the month, how many units must be produced during the month? O 24,000 O 22,000 O 32,000 O 31,000
Kimball Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $24. Kimball projects sales for April will be 2,500 packages, with sales increasing by 200 packages per month for May, June, and July. On April 1, Kimball has 100 packages on hand but desires to maintain an ending inventory of 20% of the next month's sales. Prepare a sales budget and a production budget for Kimball for April, May, and June. Begin by preparing a sales budget for April, May, and June. Kimball Company Sales Budget April, May, and June April May Budgeted packages to be sold Sales price per package Total sales 697 2,500 2,700 24 $ 60,000 $ 64,800 24 $ $ June 2,900 Total 8,100 24 24 $ 69,600 $ 194,400
The Porch Cushion Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months follows: Number of foam cushions to be produced in July Number of foam cushions to be produced in August Number of foam cushions to be produced in September Each cushion requires 2 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month must be equal to 30% of the following month's expected production needs. How many pounds of foam does The Porch Cushion Company need to purchase in August? OA. 20,800 OB. 15,400 13,000 11,000 9,000 OC. 27,400 OD. 28,600
Li Company manufactures a product requiring 2 pounds of raw material for each finished unit. Raw materials inventory had a balance of on March 1 was 7,000 pounds. The company wants to maintain an ending inventory equal to 40% of the next month’s production needs. Production for March and April is projected to be 4,000 and 5,000 units, respectively. How many pounds of raw material must be purchased in March?
Next year Lowry, Inc. expects to sell 30,000 athletic uniforms for $80 each. Fabric costs $20 a yard, and it takes 1 yard to make a uniform. Direct manufacturing labor is $8 per uniform, and manufacturing overhead is $6 for each uniform. The following target inventory levels apply next year: Fabric Beginning inventory 12,000 yards Ending inventory 9,000 yards Work-in-process inventory O units 0 units Finished goods inventory_ 6,000 units 5,000 units What dollar amount would Lowry budget for direct material (DM) purchases next year?
Soul Socket Inc. manufactures socket wrenches. . For next month, the vice president of production plans on producing 4,450 wrenches per day. The company can produce as many as 5,000 wrenches per day, but is more likely to produce 4,500 per day. . The demand for wrenches over the past three years averaged 4,250 wrenches per day. • Fixed manufacturing costs per month total $374,000. . The company works 22 days a month. • Fixed manufacturing overhead is charged on a per-wrench basis. a. What is the overhead rate per wrench based on Theoretical Capacity? [Select] b. What is the overhead rate per wrench based on Practical Capacity? [Select] c. What is the overhead rate per wrench based on Normal Utilization? [Select] d. What is the overhead rate per wrench based on Master Budget Utilization? [Select]
Beckett Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows: (Click the icon to view additional information.) Inventory at the start of the year was 850 planters. The desired inventory of planters at the end of each month should be equal to 25% of the following month's budgeted sales. Each planter requires four pounds of polypropylene (a type of plastic). The company wants to have 20% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.10 per pound. Read the requirements. Data table For the Months of January through March January February March Quarter Number of planters to be sold Units to be produced 3,425 3,400 3,525 10,350 January. 3,400 4 Multiply by: Quantity of direct materials needed per unit Quantity needed for production February 3,500…
Prepare a production budget for the first four months of the year. Cloud Shoes manufactures recovery sandals and is planning on producing 12,000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs $3.00 per yard. The company’s policy is to have enough material on hand to equal 15% of next month’s production needs and to maintain a finished goods inventory equal to 20% of the next month’s production needs. What is the budgeted cost of purchases for March?
Becker Bikes manufactures tricycles. The company expects to sell 360 units in May and 490 units in June. Beginning and ending finished goods for May are expected to be 100 and 65 units, respectively. June's ending finished goods are expected to be 75 units. Each unit requires 3 wheels at a cost of $6 per wheel. Becker requires 20 percent of next month's material production needs on hand each month. July's production units are expected to be 460 units. Compute Becker's direct materials purchases budget with respect to wheels for May and June. Budgeted cost of wheels purchased May June
TRIUMPHANT Company manufactures wood chairs that sell for USD25 each. Each chair requires 4 linear feet of wood, which costs USD2.00 per foot. Each chair takes approximately 30 minutes to build, and the labor rate averages USD12.00 per hour. TRIUMPHANT has the following inventory policies: Ending finished goods inventory should be 40 percent of next month's sales. Ending direct materials inventory should be 30 percent of next month's production. Expected unit sales (chair) for the upcoming months follow: June 225 July 275 August 350 September 400 October 375 November 425 Variable manufacturing overhead is incurred at a rate of USDO,30 per unit produced. Annual fixed manufacturing overhead is estimated to be USD7,200 uction of 4,000 units for the year. Selling and administrative expenses are estimated at USD650 per month plus (USD600 per month) for expected USDO.60 per unit sold. Compute the budgeted direct materials purchases in dollars for the month of August.
jeremy inc. produces leather handbags. The production budget for the next four months is:July 5000 units, August 7300, September 7500, October 8800. Eachhandbag requires 0.5 square meters of leather. Jeremy inc's leather inventory policy is 30 percent of next month's production needs. If the leather policy is met, what will the july 1 inventory be?750.0 square meters1095.0 square meters1825.0 square meters300.0 square meters

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