Problem 2. Turi Corp plans to produce 20,000, 24,000, and 30,000 units, respectively, in September,October, and November. Each of these units requires three units of part no. 879, which the company canpurchase for US$7 each. Turi has 35,000 units of part no. 879 in stock on August 31.Required:Prepare a direct-material purchases budget for the months of September and October. Desired endinginventory is 30% of the production usage in the following month.

Direct material purchase budget - This statement helps in calculating the material that must be…

Answered: Problem 2. Turi Corp plans to produce…

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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(b) A sales budget is given below for one of the products manufactured by N.Ltd .For six months ended 30th June 2021. Month Units January 60,000 February 105,000 March 180,000 April 120,000 May 90,000 June 75,000 The inventory of finished goods at the end of each month equal 20% at the next month's sales Page 1 of 4 On 1t Jan 2021, finished goods inventory totaled 12,000 units. Each unit of the product requires nine units of a specialized liquid known as HN-2, sometimes this extract is in short supply for this reason, the company has a policy of maintaining an inventory at the end of each month equal to 30%of next month's production needed. This requirement was met on 1st Jan 2021. Required Prepare a budget showing the quantity of NH-2 to be purchased each month from January, February and March and in total for the three months period (ii) What is the significance of budgeting in any business organization
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N2.
Lane Products manufactures a popular kitchen utensil. The company recently expanded, and the controller believes that it will need to borrow cash to continue operations. It opened negotiations with the local bank for a one-month loan of $44,000 starting March 1. The bank would charge interest at the rate of 0.5 percent per month and require the company to repay interest and principal on March 31. In considering the loan, the bank requested a projected income statement and cash budget for March. The following information is available: ● ● ● ● The company budgeted sales at 14,000 units per month in February, April, and May and at 11,000 units in March. The selling price is $62 per unit. The company offers a 2 percent discount for cash sales. The company's experience is that bad debts average 1 percent of credit sales. The inventory of finished goods on February 1 was 2,600 units. The desired finished goods inventory at the end of each month equals 25 percent of sales anticipated for the…
2. Muddy Waters Industries has projected sales of its product for the next 6 months: 300 units January February 700 units March 1,000 units April Мay 1,000 units 400 units June 300 units Each unit is sold at $40 per unit. The cost of goods sold is typically 40% of the month's budgeted sales revenue. Muddy Waters tries to maintain a Finished Goods ending inventory equal to the 60% of next month's cost of goods sold. January beginning inventories are expected to conform to company policy. Prepare a purchase budget for March, and April
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Whispering Winds Company estimates that unit sales will be 10,500 in quarter 1; 12,600 in quarter 2; 13,800 in quarter 3; and 17,800 in quarter 4. Management wants to have an ending finished goods inventory equal to 21% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first six months of 2022. WHISPERING WINDS COMPANY Production Budget For the Six Months Ending June 30, 2022 Quarter 1 2 Total
Hayma Company's sales budget for 2022 in units for the next five months is as follows: January 20,000, February 26,000, March 32,000, April 40,000 and May 42,000. The Company's ending finished goods inventory policy is set for 25% of the following month's sales. January 1 beginning inventory is 2,800 units. How many units will be produced in March? O a. 34,000 O b. 24,700 O c. 40,500 O d. 30,000 O e. None of the given answers. O f. 27,500
Concord Company estimates that 2022 sales will be $34,400 in quarter 1, $41,280 in quarter 2, and $49,880 in quarter 3. Cost of goods sold is 50% of sales. Management desires to have ending merchandise inventory equal to 10% of the next quarter's expected cost of goods sold. Prepare a merchandise purchases budget by quarter for the first 6 months of 2022. v: v ✓ CONCORD COMPANY Merchandise Purchases Budget $ $ 1 Quarter $ $ 2 $ Six Months
One Device makes universal remote controls and expects to sell 450 units in January, 750 in February, 450 in March, 600 in April, and 650 in May. The required ending inventory is 20% of the next month’s sales. Prepare a production budget for the first four months of the year. One Device Production Budget For the Four Months Ending April 30, 20XX January February March April Expected Sales fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4 fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 Total Required Units fill in the blank 10 fill in the blank 11 fill in the blank 12 fill in the blank 13 fill in the blank 15 fill in the blank 16 fill in the blank 17 fill in the blank 18 Required Production fill in the blank 19 fill in the blank 20 fill in the blank 21 fill in the blank 22 Total fill in the blank 23
GIVEN: Below is a Production Budget for the third quarter of a company's fiscal year that includes forecasted monthly unit sales. Additionally, management wishes to have 20% of the following month's unit sales as Desired Ending Inventory. July Aug Sep Q3 Oct Unit Sales: 30,000 32,000 34,000 38,000 Desired Ending Inventory: Total Required Units: Beginning Inventory: No. of Units to be Produced: 6,000 22) The Desired Beginning Inventory for August is: A) 6,000 B) 6,400 C) 6,800 D) 7,000 23) The number of units to be produced in September is: A) 34,800 B) 38,800 C) 41,600 D) 46,400
Lexi Company budgets unit sales of 1,510,000 in April, 1,210,000 in May, 320,000 in June, and 1,940,000 in July. Beginning inventory on April 1 is 604,000 units, and the company wants to have 40% of next month's unit sales in inventory at the end of each month. The merchandise cost per unit is $0.50. Prepare a merchandise purchases budget for the months of April, May, and June. LEXI COMPANY Merchandise Purchases Budget April May June Next period budgeted sales units Ratio of inventory to future sales Total required units Units to purchase Cost per unit Cost of merchandise purchases $ $ $

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