Plyton Company plans the following beginning and ending inventory levels (in units) for May: Raw materials May 1 80,000 Work in Process 30,000 May 31 95,000 30,000 Finished Goods 150,000 100,000 If the company plans to sell 890,000 units during May, the number of units it would need to manufacture during May would be: A. 940,000 units. B. 840,000 units. C. 890,000 units. D. 900,000 units.

Plyton Company plans the following beginning and ending inventory levels (in units) for May: Raw materials May 1 80,000 Work in Process 30,000 May 31 95,000 30,000 Finished Goods 150,000 100,000 If the company plans to sell 890,000 units during May, the number of units it would need to manufacture during May would be: A. 940,000 units. B. 840,000 units. C. 890,000 units. D. 900,000 units.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 1P: The Sales Department of Minimus Inc. has forecast sales for May 2016 to be 40,000 units. Additional...

See similar textbooks

Similar questions

Production information shows these costs and units for the smoothing department in August. What is the value of the inventory transferred out to finished goods and the value of the WIP inventory at the end of the month, assuming conversion costs are 30% complete?
The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be 20,000 units. Additional information follows: Materials used in production: Prepare the following: a. A production budget for March (in units). b. A direct materials budget for the month (in units and dollars).
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
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.
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?
The controller of Joy Co has requested a quick estimate of the manufacturing supplies needed for July when production is expected to be 470,000 units. Below are actual data from the prior three months of operations: March April May Multiple Choice $752,060 Production in units $755,196 450,000 540,000 480,000 Using these data and the high-low method, what is the best estimate of the cost of manufacturing supplies that would be needed for July? (Assume that this activity is within the relevant range.) Manufacturing supplies $723,060 853,560 766,560
Pluta Company plans the following beginning and ending inventory levels (in units) for January: Raw materials April 1 April 30 80,000 100,000 Work in process 20,000 20,000 Finished goods 160,000 100,000 Two units of raw material are needed to produce each unit of the finished product. If the company plans to sell 960,000 units during April, the number of units it would need to manufacture during April would be
Gillman Co. is forecasting sales of 62,000 units of products for August. To make one unit of finished product, 5 pounds of raw materials are required. Actual beginning and desired ending inventories of raw materials and finished goods are: August 1 (Actual) August 30 (Desired) Raw materials (pounds) 74,700 68,200 Finished goods (units) 5,900 8,300 a. Calculate the number of units of product to be produced during August. b. Calculate the number of pounds of raw materials to be purchased during August.
Lovely Manufacturing has scheduledproduction as follows for the next several months:Months ProductionJanuary 1,000February 1,200March 1,400Assume that it takes two pounds of raw material to make one finished unit and that ending inventory of raw materials for any month is scheduled to be 25% of next month production needs. 34. The desired ending inventory of raw materials in pounds for February is:a. 350b. 200c. 1,400d. 50035. The pounds of raw materials purchased during January is:a. 1.000b. 2,000c. 2,100d. 2.60036. The pounds of raw materials used for February production isa. 2.400b. 2,500c. 3,000d. 3,100
The controller of Moonshine has requested a quick estimate of the manufacturing supplies needed for July when production is expected to be 470,000 units. Below are actual data from the prior three months of operations: Production in units Manufacturing supplies March 450,000 April 540,000 May 480,000 Using these data and the high-low method, what is the best estimate of the cost of manufacturing supplies that would be needed for July? (Assume that this activity is within the relevant range.) a. $755,196 b. $752,060. C. $781,060. d. $723,060 853,560 $805,284 766,560
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?
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced 1st Quarter 5,600 2nd 3rd 4th Quarter Quarter Quarter 8,600 7,600 6,600 In addition, 6,600 grams of raw materials Inventory is on hand at the start of the 1st quarter and the beginning accounts payable for the 1st quarter is $3,480. Each unit requires 8.60 grams of raw material that costs $1.20 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter's production needs. The desired ending Inventory for the 4th quarter is 8,600 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labour-hours and direct labourers are paid $10.30 per hour. Required: 1. Prepare the company's direct materials purchases budget and schedule of expected cash disbursements for…