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 340, 320, 392, 352, and 420 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 nex 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
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 340, 320, 392, 352, and 420 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 nex 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
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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![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 340, 320, 392,
352, and 420 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
Required 1
March
1st Quarter
Required 2
0
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9acb6b21-f92e-477d-b86c-9176b55afd29%2Ffbdfef3c-85ee-4575-9f12-a9ac2a77934d%2Fsfi7fed_processed.png&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 340, 320, 392,
352, and 420 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
Required 1
March
1st Quarter
Required 2
0
>
![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 340, 320, 392,
352, and 420 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
$
0
Show less A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9acb6b21-f92e-477d-b86c-9176b55afd29%2Ffbdfef3c-85ee-4575-9f12-a9ac2a77934d%2Fpth3cq_processed.png&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 340, 320, 392,
352, and 420 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
$
0
Show less A
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