Company B would need 2 pounds per unit for producing 60 units of its Product X for the month of June. There is 10 pounds of material currently available in its inventory and its policy is to maintain inventory at the end enough for producing 15 units of its product. How many pounds of material is budgeted to be purchased for the month of June? a. 120 pounds b. 30 pounds c. 150 pounds d. 140 pounds

Company B would need 2 pounds per unit for producing 60 units of its Product X for the month of June. There is 10 pounds of material currently available in its inventory and its policy is to maintain inventory at the end enough for producing 15 units of its product. How many pounds of material is budgeted to be purchased for the month of June? a. 120 pounds b. 30 pounds c. 150 pounds d. 140 pounds

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

If the expected sales volume for the current period is 7,000 units, the desired ending inventory is 400 units, and the beginning inventory is 400 units, the number of units set forth in the production budget, representing total production for the current period, is оо a. 7,100 units b. 7,000 units c. 6,700 units d. 7,400 units
21.
Assume a company’s sales budget for April and May is 31,000 units and 33,000 units, respectively. Its production budget for the same two months is 28,000 units and 29,000 units, respectively. Each unit of finished goods required 6 pounds of raw materials. The company always maintains raw materials inventory equal to 30% of the following months production needs. Also assume the company pays $2.00 per pound of raw material. It always pays for 60% of its raw material purchases in the month of purchase and the remainder in the following month. The accounts payable balance on March 31st is $131,000. What would be the accounts payable balance at the end of April?
A company requires 190 pounds of plastic to meet the production needs of a product. It currently has 30 pounds of plastic inventory. The desired ending inventory of plastic is 60 pounds. How many pounds of plastic should be budgeted for purchasing during the coming period?
Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Finished goods (units) Raw material (grams) Each unit of finished goods requires 3 grams of raw material. The company plans to sell 630,000 units during the year. Multiple Choice The number of units the company would have to manufacture during the year would be: O O O 630,000 units 708,000 units Beginning Inventory 28,000 58,000 572,000 units Ending Inventory 78,000 48,000 680,000 units
If the expected sales volume for the current period is 9,000 units, the desired ending inventory is 200 units, and the beginning inventory is 300 units, the number of units set forth in the production budget, representing total production for the current period, is a. 9,000 units b. 9,100 units c. 8,700 units d. 8,900 units
A firm manufactures one product and has budgeted information as follows: Units Produced Jan. 40 Feb. 50 March 30 April 40 Each product requires 3 direct material. The desired ending inventory of raw materials is 25% of the next month's production. There is no beginning inventory of raw material in January. Budgeted purchases of direct materials in February would be 0⁹0 0135 0165 045
Fairfield Company management has budgeted the following amounts for its next fiscal year: Selling price per unit Variable expenses per unit Total fixed expenses $40.00 per unit $25.00 per unit $832,500 19. Fairfield Company's goal for the month is to earn a target operating income of $285,000. How many units must be sold to achieve this goal? (A)54,000 units (B) 55,500 units (C) 74,500 units (D) 33,300 units (2 marks) If Fairfield can reduce fixed expenses by $41,625, by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units? 20. (A) (B) $0.75 $2.78 (C) $0.53 (D) $0.25 (3 marks)
Deacon Inc. produces leather shoes. The production budget for the next four months is: July 5350 units, August 6780, September 7360, October 8180. Each shoe requires 0.8 square meters of leather. Deacon Inc.'s leather inventory policy is 34% of next month's production needs. If the leather policy is met, what will the October inventory be? vi Question 2 of 5
What is the multiple choice answer for numbers 7 8 and 9?
Masters Corporation provided their production budget for the next quarter: Units to be produced Desired Finished Goods Inventory 151,600 148,400 178,400 April 138,800 130,000 30,000 How many units is the company expecting to sell in the month of May? May Please explain what formula you used 150,000 28,400 June 142,000 31,600
Mallory Company expects to sell 130 units in the first quarter, and 70 units in the second quarter. Assuming the company prefers to maintain finished goods inventory equal to 40% of the next quarter's sales, prepare a production budget for the first quarter only. Hint: This quarter's projected sales were used to determine last quarter's required ending inventory. Mallory Company Production Budget First Quarter Budgeted Sales in units Add: desired ending finished goods inventory Total finished goods inventory needed Deduct: beginning finished goods inventory Units to be produced 1st Qtr.