Accounting 23 If there were 66,000 pounds of raw materials on hand on January1, 185,000 pounds are desired for inventory at January 31, and360,000 pounds are required for January production, how manypounds of raw materials should be purchased in January?

Concept of Beginning InventoryThe Beginning Inventory refers to the amount of raw materials…

Answered: If there were 66,000 pounds of raw…

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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Assume that a company expects to produce 10,300, 11,300, and 13,300 units of finished goods in January, February, and March, respectively. Each unit of finished goods requires 4 pounds of raw material and each pound of raw material costs $1.75. The company always maintains an ending raw materials inventory equal to 25% of next month’s production needs. What is the amount of expected raw materials purchases for February?
Li Company manufactures a product requiring 2 pounds of raw material for each finished unit. Raw materials inventory had a balance of on March 1 was 7,000 pounds. The company wants to maintain an ending inventory equal to 40% of the next month’s production needs. Production for March and April is projected to be 4,000 and 5,000 units, respectively. How many pounds of raw material must be purchased in March?
Your company expects sales of Production W to be 60,000 units in April, 75,000 units in May and 70,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month’s expected unit sales. Given this information, Walsh Company’s production of Product W for the month of May should be ____.
The number of units it would need to manufactured during May?
The controller of Moonshine has requested a quick estimate of the manufacturing supplies needed for July when production is expected to be 470,000 units. Below are actual data from the prior three months of operations: Production in units Manufacturing supplies March 450,000 April 540,000 May 480,000 Using these data and the high-low method, what is the best estimate of the cost of manufacturing supplies that would be needed for July? (Assume that this activity is within the relevant range.) a. $755,196 b. $752,060. C. $781,060. d. $723,060 853,560 $805,284 766,560
Walsh Company expects sales of Product W to be 60,000 units in April, 75,000 units in May and 70,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 25,000 units of Product W in the ending inventory. Given this information, Walsh Company's production of Product W for the month of April should be:
Assume a company’s estimated sales for January, February, and March are 36,000 units, 37,000 units, and 35,000 units, respectively. The company always maintains ending finished goods inventory equal to 15% of next month’s unit sales. What is the required production in units for January?
Yummy Foods expects to have 43,000 pounds of raw materials inventory on hand on March 31, the end of the current year. The company's following production (in units) for April through July, inclusive: April - 127,000 May - 137,000 June 153,000 July 127,000 At the end of each month, the firm desires its ending raw material inventory to be 10% of the next month's production needs. Each finished unit requires three pounds of raw materials. Yummy Foods budgeted purchases (in pounds) of raw materials for June would be: A) 451,200 B) 459,000 C) 466,800 D) 497,100 E) 543,000
smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must equal 3.000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 10,000 units. b. The raw materials inventory on hand at the end of each month must equal one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 54.000 cc of solvent H300. c. The company maintains no work in process inventories. A monthly sales budget for Supermix for the third and fourth quarters of the year follows. Budgeted Unit Sales July 35,000 August 40,000 September 50,000 October 30,000 November 20,000 December 10,000 Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October. 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the…

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If there were 66,000 pounds of raw materials on hand on January 1, 185,000 pounds are desired for inventory at January 31, and 360,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?