Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year20x1. Two units of raw material are required to produce each unit of finished product.Raw materialWork in processFinished goodsRequired:January 148,00015,00097,9001. Required production in units2. Raw material purchases in unsDecember 3151,00015,00052,8881. If Bodin Company plans to sell 466,000 units during the year, compute the number of units the firm would have to manufactureduring the year.2. If 505,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to bepurchased.

Raw materials are the type of inventory of materials or substances that are used in the production…

Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are planned for the year 20x1. Two units of raw material are required to produce each unit of finished product. Raw material Work in process Finished goods 48,000 15,000 97,000 December 11 51,000 15,000 Required: 1. If Bodin Company plans to sell 466,000 units during the year, compute the number of units the firm would have to manufacture during the year. Required production in units Raw material purchases in uns 2. If 505,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be purchased.

Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are planned for the year 20x1. Two units of raw material are required to produce each unit of finished product. Raw material Work in process Finished goods 48,000 15,000 97,000 December 11 51,000 15,000 Required: 1. If Bodin Company plans to sell 466,000 units during the year, compute the number of units the firm would have to manufacture during the year. Required production in units Raw material purchases in uns 2. If 505,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be purchased.

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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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year
20x1. Two units of raw material are required to produce each unit of finished product.
Raw material
Work in process
Finished goods
Required:
January 1
48,000
15,000
97,900
1. Required production in units
2. Raw material purchases in uns
December 31
51,000
15,000
52,888
1. If Bodin Company plans to sell 466,000 units during the year, compute the number of units the firm would have to manufacture
during the year.
2. If 505,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be
purchased.

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