Financial Accounting 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 total paper required for productionStep 2: Calculate total paper needed for the…

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.
Sleep Master, Inc. manufactures bedding sets. The budgeted production is for 57,000 comforters in 2017. Each comforter requires 6 yards of material. The estimated January 1, 2017, beginning inventory is 31,000 yards. The desired ending balance is 27,000 yards of material. If the material costs $1.50 per yard, determine the materials budget for 2017.
Each unit requires 2 pounds of direct materials, which cost $5 per pound. The company's policy is to maintain direct materials inventory equal to 30% of the next month's direct materials requirement. As of June 30, the company has 3,120 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) Materials needed for production (lbs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Budgeted cost of direct materials purchases 5,200
QElton, Inc., expects to sell 6,000 ceramic vases for $40 each. Direct materials costs are $4, direct manufacturing labor is S20, and manufacturing overhead is S6 per vase. The following inventory levels apply to 2016: Beginning inventory Ending inventory Direct materials 1,000 units 1,000 units Work-in- process inventory O units O units Finished goods inventory 500 units 400 units What are the 2016 total budgeted manufacturing costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively? S24,000; $120,000; $36,000 $4,000; $20,000; $6,000 $23,600; $118,000; $35,400 $4,000; SO; $9,000 On the 2016 budgeted income statement, what amount will be reported for cost of goods sold? $180,000 $183,000 $210,000 $177,000
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 $0.16 per square yard, determine the direct materials purchases budget for 20Y6. If required, round your final answer to the nearest dollar.$
Marshall Inc. budgeted production of 58,000 personal journals in 20Y6. Paper is required to produce a journal. Assume 106 square yards of paper are required for each journal. The estimated January 1, 20Y6, paper inventory is 246,000 square yards. The desired December 31, 20Y6, paper inventory is 277,000 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.
Shadee Corp. expects to sell 630 sun visors in May and 410 in June. Each visor sells for $24. Shadee's beginning and ending finished goods inventories for May are 75 and 45 units, respectively. Ending finished goods inventory for June will be 60 units. ! Required: 1. Determine Shadee's budgeted total sales for May and June.
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 schedule showing the computation of cost of goods sold for 2019.
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.
Harbour Inc. budgeted production of 258,000 personal journals in 20Y6. Paper is required to produce a journal. Assume 5 square yards of paper are required for each journal. The estimated January 1, 20Y6, paper inventory is 25,100 square yards. The desired December 31, 20Y6, paper inventory is 17,000 square yards. Paper costs $0.60 per square yard. Each journal requires assembly. Assume that 6 minutes are required to assemble each journal. Assembly labor costs $16.50 per hour. Prepare a cost of goods sold budget for Harbour Inc. using the information above. Assume the estimated inventories on January 1, 20Y6, for finished goods and work in process were $41,100 and $35,700, respectively. Also assume the desired inventories on December 31, 20Y6, for finished goods and work in process were $49,800 and $50,900, respectively. Factory overhead was budgeted at $197,200. Round your interim calculations to nearest cent, if required.

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