Financial Accounting Nashville Car Parts has 50,000 pounds of raw materials in inventory onFebruary 1. The company plans to have 80,000 pounds of raw materials ininventory by February 28. The production requirements for February areestimated at 320,000 pounds. How many pounds of raw materials should bepurchased in February?a. 300,000 pounds.b. 350,000 pounds.c. 400,000 pounds.d. 220,000 pounds.

Step 1: Define Raw Materials to be PurchasedThe raw materials to be purchased is the amount of raw…

Answered: Nashville Car Parts has 50,000 pounds…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...

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Total Pops data show the following information: New machinery will be added in April. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next months requirements. Direct material requires 2 pounds per unit at a cost of $3 per pound. The ending inventory required for direct materials is 15% of the next months needs. In January, the beginning inventory is 3,000 units of finished goods and 4,470 pounds of material. Prepare a production budget, direct materials budget, and direct labor budget for the first quarter of the year.
One Device makes universal remote controls and expects to sell 500 units in January, 800 in February, 450 in March, 550 in April, and 600 in May. The required ending inventory is 20% of the next months sales. Prepare a production budget for the first four months of the year.
Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700 in April. and 2,900 in May. The required ending inventory is 20% of the next months sales, and the beginning inventory on January 1 was 600 units. Prepare a production budget for the first four months of the year.
How many pounds of raw materials should be purchased in February on these general accounting question?
Assume that a company expects to produce 10,300, 11,300, and 13,300 units of finished goods in January, February, and March, respectively. Each unit of finished goods requires 4 pounds of raw material and each pound of raw material costs $1.75. The company always maintains an ending raw materials inventory equal to 25% of next month’s production needs. What is the amount of expected raw materials purchases for February?
Li Company manufactures a product requiring 2 pounds of raw material for each finished unit. Raw materials inventory had a balance of on March 1 was 7,000 pounds. The company wants to maintain an ending inventory equal to 40% of the next month’s production needs. Production for March and April is projected to be 4,000 and 5,000 units, respectively. How many pounds of raw material must be purchased in March?
Yummy Foods expects to have 43,000 pounds of raw materials inventory on hand on March 31, the end of the current year. The company's following production (in units) for April through July, inclusive: April - 127,000 May - 137,000 June 153,000 July 127,000 At the end of each month, the firm desires its ending raw material inventory to be 10% of the next month's production needs. Each finished unit requires three pounds of raw materials. Yummy Foods budgeted purchases (in pounds) of raw materials for June would be: A) 451,200 B) 459,000 C) 466,800 D) 497,100 E) 543,000
If there were 100,000 pounds of raw materials on hand on January 1, 250,000 pounds are desired for inventory at January 31, and 575,000 pounds are required for January production, how many pounds of raw materials should be purchased in January? O 425,000 pounds O 725,000 pounds 545.000 pounds O470,000 pounds
The Boswell Corporation forecasts its sales in units for the next four months as follows: March 11,000 April 13,000 May 10,500 June 9,000 Boswell maintains an ending inventory for each month in the amount of three times the expected sales in the following month. The ending inventory for February (March's beginning inventory) reflects this policy. Materials cost $8 per unit and are paid for in the month after production. Labour cost is $12 per unit and is paid for in the month incurred. Fixed overhead is $14,500 per month. Dividends of $20,500 are to be paid in May.
Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: March 15,000 April 17,000 May 14,500 June 13,000 Wright maintains an ending inventory for each month in the amount of two and one-half times the expected sales in the following month. The ending inventory for February (March’s beginning inventory) reflects this policy. Materials cost $7 per unit and are paid for in the month after production. Labor cost is $11 per unit and is paid for in the month incurred. Fixed overhead is $16,500 per month. Dividends of $20,900 are to be paid in May. The firm produced 14,000 units in February. Complete a production schedule and a summary of cash payments for March, April, and May. Remember that production in any one month is equal to sales plus desired ending inventory minus beginning inventory.
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ABCL Corporation predicts the following sales in units for the coming four months: May June July August September Unit sales …… 400 500 520 480 540 Finished goods inventory on April 30: 120 units Raw materials inventory on April 30: 450 pounds Desired ending inventory each month: Finished goods: 30% of next month's sales Raw materials: 25% of next month's production needs Number of pounds of raw material required per finished unit: 4 lbs. Required: How many pounds of raw materials should be purchased in May?

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