Brief Exercise 23.4 (Static) Estimating Direct Materials Inventory (LO23-4) On January 1, Howard Corporation determined that its direct materials inventory needs to contain 4,000 pounds of materials by March 31. To achieve this goal, Howard will have to use three pounds of direct materials for every pound that it purchases during the upcoming quarter. On the basis of the company's budgeted sales volume, management estimates that 8,000 pounds of direct materials need to be purchased by March 31. Determine how many of pounds of direct materials are currently in Howard's January 1 inventory. Answer is complete but not entirely correct. Beginning materials inventory 4,000 8 Ibs.

Brief Exercise 23.4 (Static) Estimating Direct Materials Inventory (LO23-4) On January 1, Howard Corporation determined that its direct materials inventory needs to contain 4,000 pounds of materials by March 31. To achieve this goal, Howard will have to use three pounds of direct materials for every pound that it purchases during the upcoming quarter. On the basis of the company's budgeted sales volume, management estimates that 8,000 pounds of direct materials need to be purchased by March 31. Determine how many of pounds of direct materials are currently in Howard's January 1 inventory. Answer is complete but not entirely correct. Beginning materials inventory 4,000 8 Ibs.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 1P: The Sales Department of Minimus Inc. has forecast sales for May 2016 to be 40,000 units. Additional...

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Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc., budgeted sales of the following. At the end of the year, actual sales revenue for Product R and Product S was 3,075,000 and 3,254,000, respectively. The actual price charged for Product R was 25 and for Product S was 20. Only 10 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled 540,000 for this product. Required: 1. Calculate the sales price and sales volume variances for each of the three products based on the original budget. 2. Suppose that Product T is a new product just introduced during the year. What pricing strategy is Eastman, Inc., following for this product?
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Question:How many units of Material X is NUBD planning to purchase during September 2021?
2 Arrangon Ltd. is a company that manufactures and sells a single product called Zoltar. For planning and control purposes they utilize a monthly master budget, which is developed in advance of the budget year. Their fiscal year end is September 30. A listing of the estimated ledger balances for the company's current year of September 30, 2024 is given below: Cash Accounts receivable Inventory-raw materials Inventory-finished goods Capital assets (net) $370,058 674,730 420,090 453,122 2,632,000 $4,550,000 The sales forecast consisted of these few lines: Accounts payable $719,488 Income tax payable 42,000 Capital stock Retained earnings 2.000.000 1,788,512 $4,550,000 • For the year ended September 30, 2024: 450,000 units at $42.00 each* For the year ended September 30, 2025: 475,000 units at $43.00 each . For the year ended September 30, 2026: 500,000 units at $44.00 each *Sales for the year ended September 30, 2024 are based on actual sales to date and budgeted sales for the duration…
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