Problem 2.Tyrion Company has the following budgeted production for the 2nd quarter ending in June 30.AprilMayJuneQuarterBudgeted Production 40,00050,00060,000150,000Each unit requires 3 pounds of raw material that costs $5.00 per pound. Management desires toend each month with an inventory of raw materials equal to 20% of the following month'sproduction needs. The desired ending inventory for June is 40,000 pounds. Management plansto pay for 60% of raw material purchases in the month acquired and 40% in the followingmonth.In addition, the beginning raw materials inventory for April is budgeted to be 24,000 pounds andthe beginning accounts payable for the April is budgeted to be $50,820.Required:a. Prepare the company's direct materials budget and schedule of expected cashdisbursements for purchases of materials for the 2nd quarter ending in June.b. If the actual cost of material purchased is $4.5 per pound and 4 pounds of rawmaterials were purchased to manufacture each unit of product. Compute thematerials price variance for one unit of product from the budgeted standard.

Production Budget: It is an estimate of units to be produced in the future period, this is based on…

Problem 2. Tyrion Company has the following budgeted production for the 2nd quarter ending in June 30. April May June Quarter Budgeted Production 40,000 50,000 60,000 150,000 Each unit requires 3 pounds of raw material that costs $5.00 per pound. Management desires to end each month with an inventory of raw materials equal to 20% of the following month's ntion noode Tho docirod inver for June ie 40 .000 pounde Monogeme nlane

Problem 2. Tyrion Company has the following budgeted production for the 2nd quarter ending in June 30. April May June Quarter Budgeted Production 40,000 50,000 60,000 150,000 Each unit requires 3 pounds of raw material that costs $5.00 per pound. Management desires to end each month with an inventory of raw materials equal to 20% of the following month's ntion noode Tho docirod inver for June ie 40 .000 pounde Monogeme nlane

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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