On January 1, 2022, the Bonita Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2022. 2 Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: The ending raw materials and finished goods inventories at December 31, 2021, follow the same percentage relationships to production and sales that occur in 2022. Three pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound. Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2020. Units to be Produced Direct Materials Per Unit Total Pounds Needed for Production First quarter 6,800: second quarter 8,160; third quarter 9,520. 40% of the next quarter's production requirements, 25% of the next quarter's expected sales units. 9.870 units. Add Total Materials Required v Desired Ending Direct Materials (Pounds) BONITA COMPANY Direct Materials Budget For the Six Months Ending June 30, 2020 Quarter
On January 1, 2022, the Bonita Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2022. 2 Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: The ending raw materials and finished goods inventories at December 31, 2021, follow the same percentage relationships to production and sales that occur in 2022. Three pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound. Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2020. Units to be Produced Direct Materials Per Unit Total Pounds Needed for Production First quarter 6,800: second quarter 8,160; third quarter 9,520. 40% of the next quarter's production requirements, 25% of the next quarter's expected sales units. 9.870 units. Add Total Materials Required v Desired Ending Direct Materials (Pounds) BONITA COMPANY Direct Materials Budget For the Six Months Ending June 30, 2020 Quarter
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:On January 1, 2022, the Bonita Company budget committee has reached agreement on the following data for the 6 months ending
June 30, 2022.
Sales units:
Ending raw materials inventory:
Ending finished goods inventory:
Third-quarter production:
The ending raw materials and finished goods inventories at December 31, 2021, follow the same percentage relationships to
production and sales that occur in 2022. Three pounds of raw materials are required to make each unit of finished goods. Raw
materials purchased are expected to cost $4 per pound.
Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2020.
Units to be Produced
Direct Materials Per Unit
Total Pounds Needed for Production
Add
AING
2 Total Materials Required
Direct Materials Per Unit
Desired Ending Direct Materials (Pounds)
Total Pounds Needed for Production
Add B
Less
Total Materials Required
First quarter 6,800: second quarter 8,160; third quarter 9,520.
40% of the next quarter's production requirements,
25% of the next quarter's expected sales units.
9.870 units.
Direct Materials Purchases
Altro
Desired Ending Direct Materials (Pounds)
Cost Per Pound
v
Direct Materials Purchases
♥
Beginning Direct Materials (Pounds)
♥
3
♥
BONITA COMPANY
Direct Materials Budget
For the Six Months Ending June 30, 2020
$
Quarter
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