E8-21 (Algo) Preparing Production and Direct Materials Purchases Budgets [LO 8-3b, c] Galactic Incorporated manufactures flying drone toys. Sales units for January, February, March, April, and May were 440, 420, 492, 452, and 520 respectively. Required: 1. The company's policy for ending finished goods is 25 percent of next month's sales. Determine production budget for the first quarter. 2. The drone toy includes 2 LED lights, which cost $15 each. The company requires ending direct materials to be 20 percent of next month's materials requirement. Determine direct materials purchases budget with respect to LED lights for the first quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2 The drone toy includes 2 LED lights, which cost $15 each. The company requires ending direct materials to be 20 percent of next month's materials requirement. Determine direct materials purchases budget with respect to LED lights for the first quarter. Note: Do not round intermediate calculations. Budgeted cost of direct material purchases January < Required 1 February March Required 2 > 1st Quarter Show less A
E8-21 (Algo) Preparing Production and Direct Materials Purchases Budgets [LO 8-3b, c] Galactic Incorporated manufactures flying drone toys. Sales units for January, February, March, April, and May were 440, 420, 492, 452, and 520 respectively. Required: 1. The company's policy for ending finished goods is 25 percent of next month's sales. Determine production budget for the first quarter. 2. The drone toy includes 2 LED lights, which cost $15 each. The company requires ending direct materials to be 20 percent of next month's materials requirement. Determine direct materials purchases budget with respect to LED lights for the first quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2 The drone toy includes 2 LED lights, which cost $15 each. The company requires ending direct materials to be 20 percent of next month's materials requirement. Determine direct materials purchases budget with respect to LED lights for the first quarter. Note: Do not round intermediate calculations. Budgeted cost of direct material purchases January < Required 1 February March Required 2 > 1st Quarter Show less A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Question
Please do not give solution and formulae in image format..thanku
![E8-21 (Algo) Preparing Production and Direct Materials Purchases Budgets [LO 8-3b, c]
Galactic Incorporated manufactures flying drone toys. Sales units for January, February, March, April, and May were 440, 420, 492,
452, and 520 respectively.
Required:
1. The company's policy for ending finished goods is 25 percent of next month's sales. Determine production budget for the first
quarter.
2. The drone toy includes 2 LED lights, which cost $15 each. The company requires ending direct materials to be 20 percent of next
month's materials requirement. Determine direct materials purchases budget with respect to LED lights for the first quarter.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
The drone toy includes 2 LED lights, which cost $15 each. The company requires ending direct materials to be 20 percent of
next month's materials requirement. Determine direct materials purchases budget with respect to LED lights for the first
quarter.
Note: Do not round intermediate calculations.
Budgeted cost of direct material purchases
January
< Required 1
February
March
Required 2 >
1st Quarter
Show less A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F090e7853-72c0-431d-876e-10eb18449924%2F86f68c12-c412-41a0-8671-542ece0ee746%2F7ye700j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E8-21 (Algo) Preparing Production and Direct Materials Purchases Budgets [LO 8-3b, c]
Galactic Incorporated manufactures flying drone toys. Sales units for January, February, March, April, and May were 440, 420, 492,
452, and 520 respectively.
Required:
1. The company's policy for ending finished goods is 25 percent of next month's sales. Determine production budget for the first
quarter.
2. The drone toy includes 2 LED lights, which cost $15 each. The company requires ending direct materials to be 20 percent of next
month's materials requirement. Determine direct materials purchases budget with respect to LED lights for the first quarter.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
The drone toy includes 2 LED lights, which cost $15 each. The company requires ending direct materials to be 20 percent of
next month's materials requirement. Determine direct materials purchases budget with respect to LED lights for the first
quarter.
Note: Do not round intermediate calculations.
Budgeted cost of direct material purchases
January
< Required 1
February
March
Required 2 >
1st Quarter
Show less A
![E8-21 (Algo) Preparing Production and Direct Materials Purchases Budgets [LO 8-3b, c]
Galactic Incorporated manufactures flying drone toys. Sales units for January, February, March, April, and May were 440, 420, 492,
452, and 520 respectively.
Required:
1. The company's policy for ending finished goods is 25 percent of next month's sales. Determine production budget for the first
quarter.
2. The drone toy includes 2 LED lights, which cost $15 each. The company requires ending direct materials to be 20 percent of next
month's materials requirement. Determine direct materials purchases budget with respect to LED lights for the first quarter.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
The company's policy for ending finished goods is 25 percent of next month's sales. Determine production budget for the first
quarter.
Budgeted production (units)
January February March
(Required 1
1st Quarter
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F090e7853-72c0-431d-876e-10eb18449924%2F86f68c12-c412-41a0-8671-542ece0ee746%2Fgkih5uk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E8-21 (Algo) Preparing Production and Direct Materials Purchases Budgets [LO 8-3b, c]
Galactic Incorporated manufactures flying drone toys. Sales units for January, February, March, April, and May were 440, 420, 492,
452, and 520 respectively.
Required:
1. The company's policy for ending finished goods is 25 percent of next month's sales. Determine production budget for the first
quarter.
2. The drone toy includes 2 LED lights, which cost $15 each. The company requires ending direct materials to be 20 percent of next
month's materials requirement. Determine direct materials purchases budget with respect to LED lights for the first quarter.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
The company's policy for ending finished goods is 25 percent of next month's sales. Determine production budget for the first
quarter.
Budgeted production (units)
January February March
(Required 1
1st Quarter
Required 2 >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education