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Accounting
Ch 22 - Budgeting Problem Nancy Inc. has the following data to prepare budgets for 2023: Budgeted Sales units: 1st Qtr 8,000; 2nd Qtr 8,500; 3rd Qtr 9,000, 4th Qtr 9,500 Selling price per unit is $35 Desired Ending Finished Goods Inventory: 18% of next Qtr Sales Desired Ending Raw Material Inventory: 23% of next Qtr Production Beginning Inventory Balances for Production and Material follow the same percentage relationships Each unit requires 2 pounds of material, at $5 per pound Each unit requires 1.5 hours of labor, at $10 an hour Answer the following questions based on the data above: Compute the Sales Budget for the 4 Quarters, and total for the year Compute the Production Units Required for Qtr 1 and Qtr 2 Compute the total pounds of Direct Material Purchases required for Qtr 1 and Qtr 2 Compute the total cost of Direct Material Purchases required for Qtr 1 and Qtr 2 Compute the total cost of Direct Labor required for Qtr 1 and Qtr 2 Show all calculations for each item step-by-step

Ch 22 - Budgeting Problem Nancy Inc. has the following data to prepare budgets for 2023: Budgeted Sales units: 1st Qtr 8,000; 2nd Qtr 8,500; 3rd Qtr 9,000, 4th Qtr 9,500 Selling price per unit is $35 Desired Ending Finished Goods Inventory: 18% of next Qtr Sales Desired Ending Raw Material Inventory: 23% of next Qtr Production Beginning Inventory Balances for Production and Material follow the same percentage relationships Each unit requires 2 pounds of material, at $5 per pound Each unit requires 1.5 hours of labor, at $10 an hour Answer the following questions based on the data above: Compute the Sales Budget for the 4 Quarters, and total for the year Compute the Production Units Required for Qtr 1 and Qtr 2 Compute the total pounds of Direct Material Purchases required for Qtr 1 and Qtr 2 Compute the total cost of Direct Material Purchases required for Qtr 1 and Qtr 2 Compute the total cost of Direct Labor required for Qtr 1 and Qtr 2 Show all calculations for each item step-by-step

FINANCIAL ACCOUNTING
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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Ch 22 - Budgeting Problem

Nancy Inc. has the following data to prepare budgets for 2023:

  • Budgeted Sales units: 1st Qtr 8,000; 2nd Qtr 8,500; 3rd Qtr 9,000, 4th Qtr 9,500
  • Selling price per unit is $35
  • Desired Ending Finished Goods Inventory: 18% of next Qtr Sales
  • Desired Ending Raw Material Inventory: 23% of next Qtr Production
  • Beginning Inventory Balances for Production and Material follow the same percentage relationships
  • Each unit requires 2 pounds of material, at $5 per pound
  • Each unit requires 1.5 hours of labor, at $10 an hour

Answer the following questions based on the data above:

  1. Compute the Sales Budget for the 4 Quarters, and total for the year
  2. Compute the Production Units Required for Qtr 1 and Qtr 2
  3. Compute the total pounds of Direct Material Purchases required for Qtr 1 and Qtr 2
  4. Compute the total cost of Direct Material Purchases required for Qtr 1 and Qtr 2
  5. Compute the total cost of Direct Labor required for Qtr 1 and Qtr 2

Show all calculations for each item step-by-step

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