Jaka Corporation manufactures and sells concrete blocks for the residential and commercial building. Jaka expects the following sales unit, the price per unit and desired ending inventory for the year 2021. Quarter 3 6,000,000 Quarter 1 Quarter 2 Quarter 4 Sales unit 2,000,000 6,000,000 2,000,000 Price/unit ($) Ending Inventory 0.70 0.70 0.80 0.80 500,000 500,000 100,000 100,000 Inventories for both 1st January 2021 and 1st January 2022 are expected to be 100,000 blocks. The raw materials and direct labour required for each concrete block are as follows: Units Cost Raw materials Direct labour Jaka's policy is to have 5 million kg of raw materials in ending inventory for the 26kg 0.015 hour $0.01/kg $14/hour third and fourth quarters and 8 million kg of the materials in ending inventory for the first and second quarters. Required: Prepare the following budgets for the year 2021: - (a) Sales budget. Show total sales by quarter and in total for the year. (b) roduction budget. Show total production unit by quarter and in total for the year. (c) Direct material usage and purchase budge

Jaka Corporation manufactures and sells concrete blocks for the residential and commercial building. Jaka expects the following sales unit, the price per unit and desired ending inventory for the year 2021. Quarter 3 6,000,000 Quarter 1 Quarter 2 Quarter 4 Sales unit 2,000,000 6,000,000 2,000,000 Price/unit ($) Ending Inventory 0.70 0.70 0.80 0.80 500,000 500,000 100,000 100,000 Inventories for both 1st January 2021 and 1st January 2022 are expected to be 100,000 blocks. The raw materials and direct labour required for each concrete block are as follows: Units Cost Raw materials Direct labour Jaka's policy is to have 5 million kg of raw materials in ending inventory for the 26kg 0.015 hour $0.01/kg $14/hour third and fourth quarters and 8 million kg of the materials in ending inventory for the first and second quarters. Required: Prepare the following budgets for the year 2021: - (a) Sales budget. Show total sales by quarter and in total for the year. (b) roduction budget. Show total production unit by quarter and in total for the year. (c) Direct material usage and purchase budge

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 4CE: Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and...

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