Coronado Company's sales budget projects unit sales of part 1987 of 11,800 units in January, 13,400 units in February, and 16,100 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $2 per pound. Coronado Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2021. (a) Your answer is partially correct. Prepare a production budget for January and February 2022. Total Materials Required Add Total Materials Required Less : Desired Ending Finished Goods Inventory Beginning Direct Materials CORONADO COMPANY Production Budget For the Quarter Ending February 28, 2022 Direct Material Pounds Per Unit V January 48480 22304 2007 70784 19392 51392 February

Coronado Company's sales budget projects unit sales of part 1987 of 11,800 units in January, 13,400 units in February, and 16,100 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $2 per pound. Coronado Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2021. (a) Your answer is partially correct. Prepare a production budget for January and February 2022. Total Materials Required Add Total Materials Required Less : Desired Ending Finished Goods Inventory Beginning Direct Materials CORONADO COMPANY Production Budget For the Quarter Ending February 28, 2022 Direct Material Pounds Per Unit V January 48480 22304 2007 70784 19392 51392 February

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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XYZ Company is preparing its direct materials budget. Budgeted production for January, February, March, and April are 5000 units, 7000 units, 6500 units, and 8000 units, resp finished product, three kilograms of direct materials are needed. Direct materials inventory at the beginning of any month should be 20% of that month's production needs. Ea the company $20. What is the total cost of direct materials to be purchased in February? Select one: O a. $372,600 O b. 5351,900 Oc $393,300 O d. $414,000 O e. None of the given answers
Sunrise Poles manufactures hiking poles and is planning on producing 3,646 units in March and 4,395 in April. Each pole requires a half pound of material, which costs $1.17 per pound. The company’s policy is to have enough material on hand to equal 7% of the next month’s production needs and to maintain a finished goods inventory equal to 17% of the next month’s production needs. What is the budgeted cost of purchases for March? Round to the nearest penny, two decimal places.
Sill Corporation makes one product. Budgeted unit sales for January, February, March, and April are 9,900, 11,400, 11,900, and 13,400 units, respectively. The ending finished goods inventory equals 20% of the following month's sales. The ending raw materials inventory equals 40% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. If 61,000 pounds of raw materials are required for production in March, then the budgeted raw material purchases for February is closest to: Multiple Choice 57,500 pounds 104,900 pounds 58,900 pounds 81,900 pounds S
Electro Company budgets production of 670,000 electric panels in the second quarter and 740,000 electric panels in the third quarter. Each panel requires 0.80 pound of direct material at a cost of $2.00 per pound. The company desires to end each quarter with an ending inventory of this material equal to 20% of next quarter's budgeted materials requirements. Beginning inventory of this material is 107,200 pounds. Prepare a direct materials budget for the second quarter. ELECTRO COMPANY Direct Materials Budget Units to produce Materials required per unit Materials needed for production (pounds) Add: Desired ending materials inventory Total materials required Less: Beginning materials inventory Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases * Second Quarter 670,000 units 0.80 pounds 536,000 pounds
The production department of Headstrong Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 8,100 9,100 7,100 6,100 In addition, the beginning raw materials inventory for the first quarter is budgeted to be 1,950 kilograms and the beginning accounts payable for the first quarter are budgeted to be $3,490. Each unit requires 3.1 kg of raw material that costs $2.50 per kilogram. Management desires to end each quarter with an inventory of raw materials equal to 10% of the following quarter’s production needs. The desired ending inventory for the fourth quarter is 2,325 kilograms. Management plans to pay for 80% of raw material purchases in the quarter acquired and 20% in the following quarter. Each unit requires 0.6 direct labour-hours, and direct labour-hour workers are paid $19.5 per hour. Required: 1-a. Prepare the company's direct…
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
kasson Company has budgeted units to be produced for the next five months as follows: budgeted units to be produced June 12,000 July 15,000 August 11,000 September 18,000 October 22,000 Kasson Company used the following information in creating its master budget for the year: Ending direct materials inventory for each month should be equal to 140% of the next month's production needs. Each unit produced requires 2.5 pounds of direct materials. Direct materials are purchased for $2.30 per pound. Kasson Company pays for 65% of a month's purchase of direct materials in the month of purchase, 25% of a month's purchase of direct materials is paid in the month after purchase, and the final 10% is paid in the second month after the month of purchase. Calculate Kasson Company's budgeted accounts payable at September 30.
Thunder Creek Company uses 2 pounds of direct materials for each unit it produces, at a cost of $4.00 per pound. The company begins the year with 9,500 pounds of material in Raw Materials Inventory. Management desires an ending inventory of 25% of next month's materials requirements Prepare a Direct Materials Budget. (When entering answers in the direct materials budget, use the production budget for your cell references. Enter all values as positive--without a minus sign--in row 31.) 2018 Jan Feb Q1 Total April Budget #3: Direct Materials Budget Budgeted units to be produced Mar 30,800 25,200 19,200 2.00 Direct materials (pounds) per unit 2.00 Direct materials needed for production 50,400 38,400 12,600 2.00 61,600 8,600 Plus: Desired direct materials in ending inventory (pounds) 15,400 Total direct materials needed 51,000 65,800 70,200 Less: Direct materials in beginning inventory (pounds) 9,500 12,600 15,400 Budgeted purchase of direct materials 41,500 53,200 54,800 Direct material…
Prepare a production budget for the first four months of the year. Cloud Shoes manufactures recovery sandals and is planning on producing 12,000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs $3.00 per yard. The company’s policy is to have enough material on hand to equal 15% of next month’s production needs and to maintain a finished goods inventory equal to 20% of the next month’s production needs. What is the budgeted cost of purchases for March?
AMZ Corporation produces a single product that requires three yards of direct materials to produce each unit. AMZ has the following budgeted information related to this product for the next five months: August September October November December units to be produced 29,900 cost of direct materials to be purchased $359,985 $493,515 $319, 200 37,800 14,200 26,300 AMZ wants to maintain monthly ending inventories of direct materials equal to 70% of the next month's production needs. The cost of direct materials is $5 per yard. Calculate the number of units budgeted to be produced in September.