Denton Company manufactures three products (A, B, and C) from three raw materials (X, Y, and Z). The following table indicates the number ofpounds of each material that is required to manufacture each type of product:ProductMaterial XMaterial YMaterial ZA32B212C322The company has a policy of maintaining an inventory of finished goods on all three products equal to 25% of the next month's budgeted sales.Unit costs of materials X, Y, and Z are respectively $4, $3, and $5. Denton Company has a policy of maintaining its raw material inventories at50% of the next month's production needs. Listed below is the sales budget for the first quarter of the current year:MonthProduct A10,000Product BProduct CJan.11,00012,00010,00012,000Feb.9,0008,000Mar.11,00010,000Selling prices for products A, B, and C are $120, $140, and $150. Monthly sales for Denton are 25% on cash and the rest on account. Of those soldon account, Denton gives a 5% discount if the account is settled in the month of sale, and a 2% discount if the account is settled in the monthfollowing the sale. Expected collection pattern from customers on account are as follows:Month of sale40%1st month after the sale 30%2nd month after the sale20%3rd month after the sale 5%Uncollectible5%Denton has accelerated the collection of receivables in December of last year because it had a long-term obligation maturing on December 31 ofthe same year. Because of this, Denton has collected all but $200,000 of accounts, 60% of which were sold in November and 40% in December.Collection for these accounts are expected to follow the normal collection pattern of Denton.How many pounds of each material must Danton purchase in January?

Name: Denton Company manufactures three products (A, B, and C) from three r
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Description: Denton Company manufactures three products (A, B, and C) from three raw materials (X, Y, and Z). The following table indicates the number ofpounds of each material that is required to manufacture each type of product:ProductMaterial XMaterial YMater

Production Budget January Sr No. Particulars Product A Product B Product C…

Business

Accounting

Denton Company manufactures three products (A, B, and C) from three raw materials (X, Y, and Z). The following table indicates the number of pounds of each material that is required to manufacture each type of product: Product Material X Material Y Material Z A 3 2 В 2 1 3 2 2 The company has a policy of maintaining an inventory of finished goods on all three products equal to 25% of the next month's budgeted sales. Unit costs of materials X, Y, and Z are respectively $4, $3, and $5. Denton Company has a policy of maintaining its raw material inventories at 50% of the next month's production needs. Listed below is the sales budget for the first quarter of the current year: Month Product C 12,000 8,000 10,000 Product A 10,000 Product B 11,000 12,000 10,000 Jan. Feb. 9,000 11,000 Mar.

Denton Company manufactures three products (A, B, and C) from three raw materials (X, Y, and Z). The following table indicates the number of pounds of each material that is required to manufacture each type of product: Product Material X Material Y Material Z A 3 2 В 2 1 3 2 2 The company has a policy of maintaining an inventory of finished goods on all three products equal to 25% of the next month's budgeted sales. Unit costs of materials X, Y, and Z are respectively $4, $3, and $5. Denton Company has a policy of maintaining its raw material inventories at 50% of the next month's production needs. Listed below is the sales budget for the first quarter of the current year: Month Product C 12,000 8,000 10,000 Product A 10,000 Product B 11,000 12,000 10,000 Jan. Feb. 9,000 11,000 Mar.

FINANCIAL ACCOUNTING

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Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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