Budgeted unit January 9,500 February 9,900 March 10,600 April 12,600 Raw materials requirement per unit of output 3pounds Raw materials cost $5.00per pound Direct labor requirement per unit of output 2.2direct labor-hours Direct labor wage rate $18.00per direct labor-hour Credit sales are collected: 40% in the month of the sale & 60% in the following month Raw materials purchases are paid: 30% in the month of purchase & 70% in the following month The ending finished goods inventory should equal 10% of the following month's sales. The ending raw materials inventory should equal 40% of the following month's raw materials production needs. Required: (LO_5) EXCEL a. What are the budgeted sales for February? b. What are the expected cash collections for February? c. According to the production budget, how many units should be produced in February? d. If 32,400 pounds of raw materials are needed for production in March, how many pounds of raw materials should purchased in February? e What is the estimated cost of raw materials purchases for February? f. If the cost of raw material purchases in January is $145,680, then in February what are the total estimated cash disbursements for raw materials purchases? g. What is the total estimated direct labor cost for February assuming the direct labor workforce is adjusted to match th hours required to produce the forecasted number of units produced?
Budgeted unit January 9,500 February 9,900 March 10,600 April 12,600 Raw materials requirement per unit of output 3pounds Raw materials cost $5.00per pound Direct labor requirement per unit of output 2.2direct labor-hours Direct labor wage rate $18.00per direct labor-hour Credit sales are collected: 40% in the month of the sale & 60% in the following month Raw materials purchases are paid: 30% in the month of purchase & 70% in the following month The ending finished goods inventory should equal 10% of the following month's sales. The ending raw materials inventory should equal 40% of the following month's raw materials production needs. Required: (LO_5) EXCEL a. What are the budgeted sales for February? b. What are the expected cash collections for February? c. According to the production budget, how many units should be produced in February? d. If 32,400 pounds of raw materials are needed for production in March, how many pounds of raw materials should purchased in February? e What is the estimated cost of raw materials purchases for February? f. If the cost of raw material purchases in January is $145,680, then in February what are the total estimated cash disbursements for raw materials purchases? g. What is the total estimated direct labor cost for February assuming the direct labor workforce is adjusted to match th hours required to produce the forecasted number of units produced?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Can you solve ( d , f and g )
Transcribed Image Text:=ket system
My
Budgeted unit sales (all on credit):
9,500
January
9,900
February
10,600
March
12,600
April
Raw materials requirement per unit of output
3pounds
$5.00per pound
Raw materials cost
2.2direct labor-hours
Direct labor requirement per unit of output
$18.00per direct labor-hour
Direct labor wage rate
Credit sales are collected: 40% in the month of the sale & 60% in the following month
Raw materials purchases are paid: 30% in the month of purchase & 70% in the following month
The ending finished goods inventory should equal 10% of the following month's sales.
The ending raw materials inventory should equal 40% of the following month's raw materials production needs.
Required: (LO_5) EXCEL
a. What are the budgeted sales for February?
b. What are the expected cash collections for February?
c. According to the production budget, how many units should be produced in February?
d. If 32,400 pounds of raw materials are needed for production in March, how many pounds of raw materials should be
purchased in February?
e What is the estimated cost of raw materials purchases for February?
f. If the cost of raw material purchases in January is $145,680, then in February what are the total estimated cash
disbursements for raw materials purchases?
g. What is the total estimated direct labor cost for February assuming the direct labor workforce is adjusted to match the
hours required to produce the forecasted number of units produced?
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