Bell expects to produce 1,900 finished goods units in January and 2,200 finished goods units in February. The company budgets 4 pounds of Direct Materials is used to manufacture each finished goods unit. The company budgets the cost of Direct Materials to be $12 per pound. (Indirect materials are insignificant and not considered for budgeting purposes.) The balance in the Raw Materials Inventory account (all direct materials) on January 1 is 4,830 pounds. Bell desires the ending balance in Raw Materials Inventory to be 25% of the next month's direct materials needed for production. Desired ending balance for February is 4,960 pounds. The budgeted cost of purchases of direct raw materials in February is

Bell expects to produce 1,900 finished goods units in January and 2,200 finished goods units in February. The company budgets 4 pounds of Direct Materials is used to manufacture each finished goods unit. The company budgets the cost of Direct Materials to be $12 per pound. (Indirect materials are insignificant and not considered for budgeting purposes.) The balance in the Raw Materials Inventory account (all direct materials) on January 1 is 4,830 pounds. Bell desires the ending balance in Raw Materials Inventory to be 25% of the next month's direct materials needed for production. Desired ending balance for February is 4,960 pounds. The budgeted cost of purchases of direct raw materials in February is

Name: Bell expects to produce 1,900 finished goods units in January and 2,2
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Bell expects to produce 1,900 finished goods units in January and 2,200 finishedgoods units in February. The company budgets 4 pounds of Direct Materials isused to manufacture each finished goods unit. The company budgets the cost ofDirect Materials

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A company budgets production of 4,720 units in May and 6,025 units in June. Each unit requires 4 pounds of direct materials. Direct materials cost $5 per pound. The company maintains direct materials inventory equal to 40% of next month's direct materials requirement. The company has 7,552 pounds of direct materials inventory on April 30. Prepare the direct materials budget for May. Units to produce Direct Materials Budget Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases May
Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It plans production of 240,000 units in the second quarter and 52,500 units in the third quarter. Raw material inventory is 43,200 pounds at the beginning of the second quarter. Other information follows: Direct materials. Each unit requires 0.60 pounds of raw material, priced at $175 per pound. The company plans to end each quarter with an ending inventory of materials equal to 30% of next quarter's budgeted materials requirements. Prepare a direct materials budget for the second quarter. (Enter "per unit" answers in two decimal places.) Units to be produced RIDA INC. Direct Materials Budget Second Quarter Materials needed for production (pounds) Total materials requirements (pounds) Materials to be purchased (pounds) Budgeted cost of direct materials purchases 240,000 units
Sill Corporation makes one product. Budgeted unit sales for January, February, March, and April are 9,900, 11,400, 11,900, and 13,400 units, respectively. The ending finished goods inventory equals 20% of the following month's sales. The ending raw materials inventory equals 40% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. If 61,000 pounds of raw materials are required for production in March, then the budgeted raw material purchases for February is closest to: Multiple Choice 57,500 pounds 104,900 pounds 58,900 pounds 81,900 pounds S
Yeaman has $13,000 in cash on hand on January 1 and has collected the following budget data: (Click on the icon to view the budget data) Assume direct labor costs and manufacturing overhead costs are paid in the month incurred. Additionally, assume Yeaman has cash payments for selling and administrative expenses including salaries of $65,000 per month plus commissions that are 1% of sales, all paid in the month of sale. The company requires a minimum cash balance of $1,000. Prepare a cash budget for January and February. Round to the nearest dollar. Will Yeaman need to borrow cash by the end of February? Begin by preparing the cash budget for January, then prepare the cash budget for February (Complete all input fields. Enter a "0" for any zero balances. Round all amounts entered into the cash budget to the nearest whole dollar.) Data table Sales Cash receipts from customers Cash payments for direct materials purchases Direct labor costs Manufacturing overhead costs (includes…
Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that May's ending inventory will consist of 29,600 units. June and July sales are estimated to be 296,000 and 306,000 units, respectively. Trago assigns variable overhead at a rate of $3.40 per unit of production. Fixed overhead equals $416,000 per month. Compute the budgeted total factory overhead for June.
Thunder Creek Company uses 2 pounds of direct materials for each unit it produces, at a cost of $4.00 per pound. The company begins the year with 9,500 pounds of material in Raw Materials Inventory. Management desires an ending inventory of 25% of next month's materials requirements Prepare a Direct Materials Budget. (When entering answers in the direct materials budget, use the production budget for your cell references. Enter all values as positive--without a minus sign--in row 31.) 2018 Jan Feb Q1 Total April Budget #3: Direct Materials Budget Budgeted units to be produced Mar 30,800 25,200 19,200 2.00 Direct materials (pounds) per unit 2.00 Direct materials needed for production 50,400 38,400 12,600 2.00 61,600 8,600 Plus: Desired direct materials in ending inventory (pounds) 15,400 Total direct materials needed 51,000 65,800 70,200 Less: Direct materials in beginning inventory (pounds) 9,500 12,600 15,400 Budgeted purchase of direct materials 41,500 53,200 54,800 Direct material…
what is the answers?
Coronado Industries determines that 63000 pounds of direct materials are needed for production in July. There are 4200 pounds of direct materials on hand at July 1 and the desired ending inventory is 3600 pounds. If the cost per unit of direct materials is $3, what is the budgeted total cost of direct materials purchases? O 183600. O 190800. O 187200. O 194400.
Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 625,000 units, estimated beginning inventory is 109,000 units, and desired ending inventory is 89,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.Material A 0.50 lb. per unit @ $0.64 per poundMaterial B 1.00 lb. per unit @ $2.33 per poundMaterial C 1.20 lb. per unit @ $0.78 per poundThe dollar amount of Material B used in production during the year is a.$2,114,475 b.$1,127,720 c.$1,691,580 d.$1,409,650
Becker Bikes manufactures tricycles. The company expects to sell 440 units in May and 570 units in June. Beginning and ending finished goods for May are expected to be 140 and 105 units, respectively. June's ending finished goods are expected to be 115 units. Each unit requires 1.5 direct labor hours and Becker's hourly labor rate is $66 per hour. Compute Becker's direct labor budget for May and June. Note: Do not round intermediate calculations. Budgeted direct labor cost May June
Broker Corporation’s budget shows straight-line depreciation on machinery of P 516,000 based on the annual production volume of 130,200 units of product. In July, it produced 8,170 units of product, and the accounts had actual depreciation on machinery of P 41,000. It controls manufacturing costs with a flexible budget. The flexible budget for the depreciation of the machine for July is: