Direct Materials Purchases Budget FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick's best-selling lines are the practice ball line (dura soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 41,000 $8.75 6,900 $16.30 February 56,000 $8.75 7,700 $16.30 March 83,000 $8.75 13,500 $16.30 April 115,000 $8.75 17,000 $16.30 FlashKick requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 8,200 practice soccer balls and 1,380 match soccer balls. Every practice ball requires 0.6 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 2 ounces of glue. FlashKick's policy is that 20 percem of the following month's production needs materials be in ending inventory. Beginning inventory in January for all raw materials met this requirement. Required: Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming year. If required, round yo answers to the nearest cent
Direct Materials Purchases Budget FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick's best-selling lines are the practice ball line (dura soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 41,000 $8.75 6,900 $16.30 February 56,000 $8.75 7,700 $16.30 March 83,000 $8.75 13,500 $16.30 April 115,000 $8.75 17,000 $16.30 FlashKick requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 8,200 practice soccer balls and 1,380 match soccer balls. Every practice ball requires 0.6 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 2 ounces of glue. FlashKick's policy is that 20 percem of the following month's production needs materials be in ending inventory. Beginning inventory in January for all raw materials met this requirement. Required: Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming year. If required, round yo answers to the nearest cent
Chapter1: Financial Statements And Business Decisions
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Direct Materials Purchases Budget
FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick's best-selling lines are the practice ball line (durable
soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to
sell the following:
Practice Balls
Match Balls
Units
Selling Price
Units
Selling Price
January
41,000
$8.75
6,900
$16.30
February
56,000
$8.75
7,700
$16.30
March
83,000
$8.75
13,500
$16.30
April
115,000
$8.75
17,000
$16.30
FlashKick requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 8,200 practice soccer balls and
1,380 match soccer balls.
Every practice ball requires 0.6 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 2 ounces of glue. FlashKick's policy is that 20 percent
met this requirement.
of the following month's production needs for raw materials be in ending inventory. Beginning inventory in January for all raw materia
Required:
Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming year. If required, round your
answers to the nearest cent.
Transcribed Image Text:Direct materials purchases budget for polyvinyl chloride panels:
FlashKick Company
Direct Materials Purchases Budget - Polyvinyl Chloride
Panels
For January and February
Polyvinyl chloride panels:
January
February
Units produced
24,600 X
Direct materials for production
Total needed
Accounting numeric field
Direct materials purchases
X xx X
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