If there were 40000 pounds of direct materials on hand on January 1, 120000 pounds are desired for inventory at January 31, and 560000 pounds are required for January production, how many pounds of direct materials should be purchased in January? a. 480000 pounds b. 680000 pounds c. 440000 pounds d. 640000 pounds
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If there were 40000 pounds of direct materials on hand on January 1, 120000 pounds are desired for inventory at January 31, and 560000 pounds are required for January production, how many pounds of direct materials should be purchased in January?
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- Northwest manufactures a product requiring 05 ounces of platinum per unit. The cost of platinum is approximately $360 per ounce, the company maintains an ending platinum inventory equal to 10% of the following month's production usage. The following data were taken from the most recent querterly production budget July August 1,100 September Planned production in units 1.000 980 The cost of platinum to be purchased to support August production is $195,840 O $198,000. O $200,160.Required information Miami Solar manufactures solar panels for industrial use. The company budgets production of 4,200 units (solar panels) in July and 4,600 units in August. Each unit requires 4 pounds of direct materials, which cost $6 per pound. The company’s policy is to maintain direct materials inventory equal to 40% of the next month’s direct materials requirement. As of June 30, the company has 6,720 pounds of direct materials in inventory, which complies with the policy. Prepare a direct materials budget for July. MIAMI SOLAR Direct Materials Budget For Month Ended July 31 Budget production (units) 4,200 Materials needed for production (lbs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Budgeted cost of direct materials purchasesPatrick Inc. makes industrial solvents. Budgeted direct labor hours for the first 3 months of the coming year are: January 13,140 February 12,300 March 15,075 The variable overhead rate is $0.70 per direct labor hour. Fixed overhead is budgeted at $2,910 per month. Required: Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer. Round total variable overhead and total overhead to the nearest dollar. Patrick Inc. Overhead Budget For the Coming First Quarter Overhead: January February March Total Total direct labor hrs fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4 Variable overhead rate $fill in the blank 5 $fill in the blank 6 $fill in the blank 7 $fill in the blank 8 Total variable overhead $fill in the blank 9 $fill in the blank 10 $fill in the blank 11 $fill in the blank 12 Add: Fixed overhead…
- 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 budgets the 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 for raw materials (in pounds) during April should be:Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming 5 months follow:January40,000February50,000March60,000April60,000May62,000The following data pertain to production policies and manufacturing specifications followed by Allison Manufacturing:Finished goods inventory on January 1 is 32,000 units, each costing $166.06. The desired ending inventory for each month is 80% of the next month's sales.The data on materials used are as follows: Direct MaterialPer-Unit UsageDM Unit Cost ($)Metal10 lbs.8Components65Inventory policy dictates that sufficient materials be on hand at the end of the month to produce 50% of the next month's production needs. This is exactly the amount of material on hand on December 31 of the prior year.The direct labor used per unit of output is 3 hours. The average direct labor cost per hour is…Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming 5 months follow: January 40,000 February 50,000 March 60,000 April 60,000 May 62,000 The following data pertain to production policies and manufacturing specifications followed by Allison Manufacturing: Finished goods inventory on January 1 is 32,000 units, each costing $166.06. The desired ending inventory for each month is 80% of the next month's sales. The data on materials used are as follows: Direct Material Per-Unit Usage DM Unit Cost ($) Metal 10 lbs. 8 Components 6 5 Inventory policy dictates that sufficient materials be on hand at the end of the month to produce 50% of the next month's production needs. This is exactly the amount of material on hand on December 31 of the prior year. The direct labor used per unit of…
- Carlos Cavalas, the manager of Echo Products' Brazilian Division, is trying to set the production schedule for the last quarter of the year. The Brazilian Division had planned to sell 69,850 units during the year, but by September 30 only the following activity had been reported: Inventory, January 1 Production Sales Inventory, September 30 The division can rent warehouse space to store up to 30,700 units. The minimum inventory level that the division should carry is 2,300 units. Mr. Cavalas is aware that production must be at least 5,940 units per quarter in order to retain a nucleus of key employees. Maximum production capacity is 45,700 units per quarter. Demand has been soft, and the sales forecast for the last quarter is only 20,900 units. Due to the nature of the division's operations, fixed manufacturing overhead is a major element of product cost. Required production Required: 1-a. Assume that the division is using variable costing. How many units should be scheduled for…Suppose a company has 1,000 units of a raw material part on hand. If 750 of these units are routed into production, should the company place an order to stock up on more of these parts? (Show calculations). Determine the economic order quantity (EOQ) for this part, assuming the following:The company plans to use 10,000 units during the coming year.The company orders this part in lots of 1,000 units, and each order placed carries a processing cost of $2.50.Each unit of inventory carries an annual holding cost of $6.40.Net Steels is a steel manufacturing company. It currently orders 180 metric tons of raw material per order. It was observed that the company often faces stockout. To tackle this issue, the company incorporated a fixed-quantity system (FQS) and collected the following data. The lead time is 2 weeks. Demand Order Cost Item Cost Inventory-Holding Cost 10000 metric tons per year $17000 per order $38000 per year 20 percent per year Assuming there are 50 weeks a year, determine the reorder point. Only for non-integer results, round your answer UP to the nearest integer. For example, if your answer is 5.05, type 6; if your answer is 5, type 5. 2DCO Economic Order Quantity (EOQ), Q* = Cn Reorder point, r = demand rate x lead time Your Answer: Answer
- please answer all parts within 30 minutes.....Cholin Co. manufactures a single product. It keeps inventory of raw materials at 150% of the coming month's budgeted production needs. Each unit of product requires three pounds of materials. The production budget is in units: May-1,000; June-1,200; July 1,300; August-1,600. Raw material purchases in July should be? a. 5,250 pounds b. 1,950 pounds c. 4,800 pounds d. 3,500 poundsMilo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units): 36,000 October 26,000 82,000 November 12,500 September 51,000 December 13,000 July August The selling price of the beach umbrellas is $15 per unit. b. All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale. 65% in the month following sale 5% uncollectible Sales for June totaled $465,000. c. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the end of June. d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month's…