Maid-Sweet makes a frozen yogurt dessert. Each frozen yogurt dessert requires 12 ounces of yogurt. The production budget for the first four months of 2012 is asfollows:JanuaryFebruary.MarchAprilBudgeted production55,00058,00062,00076,000The company has determined that it must maintain materials inventory equal to 20% of the yogurt needed for the next month's production. Maid-Sweet can purchaseyogurt for $0.10 per ounce. On December 31, 2011, there were 80,000 ounces of yogurt in stock. Prepare a budget showing direct materials usage and purchases forthe first quarter of 2012 (January, February, and March).

The objective of the question is to prepare a budget showing direct materials usage and purchases…

Answered: Maid-Sweet makes a frozen yogurt…

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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Sports Socks has a policy of always paying within the discount period and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 85% of its payments are made in the month of purchase and 15% are made the following month. The direct materials budget provides for purchases of $125,000 in November, $298,000 in December, $236,000 in January, and $232,000 in February. What is the balance in accounts payable for January 31, and February 28? Ending Balance January $fill in the blank 1 February fill in the blank 2

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