Marigold Industries has budgeted the following unit sales: Units January 10,500 February 7,000 March 9,000 11,500 15,500 2022 April May The finished goods units on hand on December 31, 2021 was 2.100 units. Each unit of finished goods requires 3 pounds of direct materials that are estimated to cost an average of $5 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. The company also has a policy of maintaining a direct materials inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 8,820 pounds of direct materials on hand at December 31, 2021.
Marigold Industries has budgeted the following unit sales: Units January 10,500 February 7,000 March 9,000 11,500 15,500 2022 April May The finished goods units on hand on December 31, 2021 was 2.100 units. Each unit of finished goods requires 3 pounds of direct materials that are estimated to cost an average of $5 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. The company also has a policy of maintaining a direct materials inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 8,820 pounds of direct materials on hand at December 31, 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Please do not give solution in image format thanku
Transcribed Image Text:Marigold Industries has budgeted the following unit sales:
2022
Units
January
February 7,000
March
9,000
April
May
10,500
11,500
15,500
The finished goods units on hand on December 31, 2021 was 2.100 units. Each unit of finished goods requires 3 pounds of direct
materials that are estimated to cost an average of $5 per pound. It is the company's policy to maintain a finished goods inventory at
the end of each month equal to 20% of next month's anticipated sales. The company also has a policy of maintaining a direct materials
inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 8,820
pounds of direct materials on hand at December 31, 2021.
Transcribed Image Text:For the first quarter of 2022, prepare a direct materials budget.
Total pounds required for production
Total materials required
Budgeted cost of direct materials purchases.
Budgeted direct materials purchases
Desired ending direct materials inventory
Units to be produced
Beginning direct materials inventory
Cost per pound
Direct materials per unit
January
MARIGOLDINDUSTRIES
Direct Materials Budget
February
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education