Coles Corporation, Incorporated makes and sells a single product, Product R. Three yards of Material K are needed to make one unit of Product R. Budgeted production of Product R for the next five months is as follows: a. b. August September October C. d. November December The company wants to maintain monthly ending inventories of Material K equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 2,500 yards of Material K were on hand. The cost of Material K is $0.85 per yard. The company wants to prepare a Direct Materials Purchase Budget for the rest of the year. The total cost of Material K to be purchased in August is: 14,000 units 14,500 units 15,500 units 12,600 units 11,900 units $42,300 $33,840 $48,200 $40,970

Coles Corporation, Incorporated makes and sells a single product, Product R. Three yards of Material K are needed to make one unit of Product R. Budgeted production of Product R for the next five months is as follows: a. b. August September October C. d. November December The company wants to maintain monthly ending inventories of Material K equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 2,500 yards of Material K were on hand. The cost of Material K is $0.85 per yard. The company wants to prepare a Direct Materials Purchase Budget for the rest of the year. The total cost of Material K to be purchased in August is: 14,000 units 14,500 units 15,500 units 12,600 units 11,900 units $42,300 $33,840 $48,200 $40,970

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

Depasquale Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.51 direct labor-hours. The direct labor rate is $8.80 per direct labor-hour. The production budget calls for producing 5,700 units in May and 6,100 units in June. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months? Multiple Choice O $26,479.20 $25,581.60 $27,376.80 O $52,958.40
Soft and Silky, Inc., manufactures bedding sets. The budgeted production is for 53,000 comforters in the coming year. Each comforter requires 6 yards of material. The estimated January 1 beginning inventory is 31,000 yards. The desired ending balance is 30,000 yards of material. If the material costs $1.50 per yard, what is the materials budget for the coming year? a.$385,500 b.$478,500 c.$475,500 d.$477,000
The sales budget of a company for November and December is 46,000 units and 48,000 units, respectively. its production budget for the same two months is 43,000 units and 44,000 units, respectively. Each unit of finished goods requires 4 pounds of raw materials. The company always maintains raw materials inventory equal to 20% of the following months production needs. Assume the company pays $2.75 per pound of raw material. It alvways pays for 50% of its raw material purchases in the month of purchase and the remainder in the following month. The accounts payable balance on October 31 is $146,000. What amount would the company show in their November cash budget for cash disbursements for raw material purchases? Multiple Choice $391,600 $382,850 $388,600 $383,600 ( Prev 4 of 23 MacBook Ain
Zira Company reports the following production budget for the next four months. Each finished unit requires four pounds of direct materials, and the company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 847 pounds. Direct materials cost $5 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) Units to produce April May June 706 760 738 Units to produce Materials required per unit Materials needed for production (pounds) Add: Desired ending materials inventory (pounds) Total materials required (pounds) Less: Beginning materials inventory (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases July 718 ZIRA COMPANY Direct Materials Budget April $ $ 706 4 2,824 2,824 ↑ 5 $ 0 $ May 760 4 3,040 Saved 3,040 June 5 $ 0 $ 738 units 4 pounds 2,952 pounds 2,952 pounds 5 per pound 0…
Ramos Company provides the following budgeted production for the next four months. Units to produce April 620 May June July 750 720 720 Each finished unit requires 5 pounds of direct materials. The company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 930 pounds. Direct materials cost $2 per pound. Prepare a direct materials budget for April, May, and June. Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases RAMOS COMPANY Direct Materials Budget April May June 620 750 720 units 0
Tyler Company budgets the following unit sales for the next four months: April, 3,800 units; May, 4,600 units; June, 6,900 units; and July, 2,800 units. The company's policy is to maintain finished goods inventory equal to 30% of the next month's unit sales. At the end of March, the company had 1,140 finished units in inventory. Prepare a production budget for each of the months of April, May, and June. Next period budgeted sales units Desired ending inventory units Total required units Units to produce TYLER COMPANY Production Budget April % May % June %
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: Units to be produced Each unit requires 0.75 direct labor-hours, and direct laborers are paid $16.00 per hour. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 11,000 8,000 8,500 10,800 Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Required production in units Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost Rordan Corporation Direct Labor Budget 2nd Quarter 8,000 1st Quarter 11,000 8,250✔✔ Answer is not complete. $ 132,000 6,000 3rd Quarter 8,500 6,375 4th Quarter 10,800 S 96,000 $ 102,000 $ 8,100 129,600 Year
Zira Company reports the following production budget for the next four months. Each finished unit requires five pounds of direct materials, and the company wants to end each month with direct materials inventory equal to 20% of next month's production needs, Beginning direct materials inventory for April was 634 pounds. Direct materials cost $6 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) April May 675 June July Units to produce 634 667 647 ZIRA COMPANY Direct Materials Budget April May June Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases
Crane, Inc. makes and sells a single product, buckets. It takes 20 ounces of plastic to make one bucket. Budgeted production of buckets for the next three months is as follows: August 85000 units, September 70000 units, October 60000 units. The company wants to maintain monthly ending inventories of plastic equal to 10% of the following month's production needs. On August 31, 190000 ounces of plastic were on hand. The cost of plastic is $0.02 per gram. How much is the ending inventory of plastic to be reported on the company’s balance sheet at September 30? $2400 $120000 $7000 $2800
Pouch Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.90 direct labor-hours. The direct labor rate is $9.90 per direct labor-hour. The production budget calls for producing 2,600 units in June and 2,400 units in July. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months? $44,550.00 $22,275.00 $21,384.00 $23,166.00
The Simmons Company finished their sales projections for the coming year. The company produces one product. Part of next year's sales projections are as follows. Projected Sales in Units July 125,000 August 145,000 September 139,000 October 155,000 November 180,000 The budget committee has also completed the following information on inventories. Raw Materials Ending Balance, June, 50,000 lbs Desired ending levels (monthly 10% of next month's production needs) Work-In-Progress None Finished Goods Inventory Ending Balance, June, 22,000 units Desired ending levels: 20% of next month's sales The Engineering Department has developed the following standards upon which the production budgets will be developed. Item Standard Material usage 3 pounds per unit Material price per pound $2.00 per pound Labor usage 0.5 hours per unit Labor rate $40 per hour Machine hours 2 machine hours per unit The Simmons Company uses a modified allocation method for…
Zira Company reports the following production budget for the next four months. Each finished unit requires six pounds of direct materials, and the company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 1,156 pounds. Direct materials cost $5 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) April May 642 670 Units to produce Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases June 676 July 656 ZIRA COMPANY Direct Materials Budget April May June