Give true answer the accounting question Killingsworth Publishers Inc. budgeted production of 57,000diaries in 2016. Paper is required to produce a diary. Assume108 square yards of paper are required for each diary. Theestimated January 1, 2016, paper inventory is 369,000 squareyards. The desired December 31, 2016, paper inventory is339,000 square yards. If paper costs dollar 0.12 per square yard,determine the direct materials purchases budget for 2016.

Step 1: Calculate the total paper required for productionStep 2: Calculate the total paper needed…

Answered: Killingsworth Publishers Inc. budgeted…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...

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The Sales Department of Minimus Inc. has forecast sales for May 2016 to be 40,000 units. Additional information follows: Materials used in production: Direct labor hours required in production: Prepare the following: a. A production budget for May. b. A direct materials budget for May. c. A direct labor budget for May.
Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.
Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.
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Seranno Inc. budgeted production of 55,000 personal journals in 20Y6. Paper is required to produce a journal. Assume 104 square yards of paper are required for each journal. The estimated January 1, 20Y6, paper inventory is 286,000 square yards. The desired December 31, 20Y6, paper inventory is 315,000 square yards. If paper costs $0.16 per square yard, determine the direct materials purchases budget for 20Y6. If required, round your final answer to the nearest dollar.$
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Walt Bach Company has accumulated the following budget data for the year 2019. Sales: 40000 units, unit selling price $50. Cost of one unit of finished goods: Direct materials 2 pounds at $5 per pound, direct labor 1.5 hours at $12 per hour, and manufacturing overhead $6 per direct labor hour. Inventories (raw material only): Beginning, 10000 pounds; ending, 15000 pounds. Raw materials cost: $5 per pound. Selling and administrative expenses: $200000 Income taxes: 30% of income before income taxes. Prepare a budget income statement for 2019.
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