PROBLEM 9-15 Production and Direct Materials Budgets [LO3, LO4]Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout SouthEast Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit ofSupermix, one of the company's products. The company is now planning raw materials needs forChapter 9the third quarter, the quarter in which peak sales of Supermix occur. To keep production and salesmoving smoothly, the company has the following inventory requirements:a. The finished goods inventory on hand at the end of each month must be equal to 3,000 units ofSupermix plus 20% of the next month's sales. The finished goods inventory on June 30 isbudgeted to be 10,000 units.b. The raw materials inventory on hand at the end of each month must be equal to one-halfof thefollowing month's production needs for raw materials. The raw materials inventory on June30 is budgeted to be 54,000 cc of solvent H300.c. The company maintains no work in process inventories.A sales budget for Supermix for the last six months of the year follows.Budgeted Salesin UnitsJuly .August..SeptemberOctober.35,00040,00050,00030,000November.December20,00010,000

Raw material means the material which is used while making the finished product. Budget means where…

PROBLEM 9-15 Production and Direct Materials Budgets [LO3, LO4] Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company's products. The company is now planning raw materials needs for Chapter 9 the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a The finished goods inventory on hand at the end of cach month must be equal to 3,000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 10,000 units. b. The raw materials inventory on hand at the end of each month must be equal to one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 54,000 cc of solvent H300. c. The company maintains no work in process inventories. A sales budget for Supermix for the last six months of the year follows. Budgeted Sales in Units 35,000 40,000 50,000 30,000 July August. September October. November December 20,000 10,000

PROBLEM 9-15 Production and Direct Materials Budgets [LO3, LO4] Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company's products. The company is now planning raw materials needs for Chapter 9 the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a The finished goods inventory on hand at the end of cach month must be equal to 3,000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 10,000 units. b. The raw materials inventory on hand at the end of each month must be equal to one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 54,000 cc of solvent H300. c. The company maintains no work in process inventories. A sales budget for Supermix for the last six months of the year follows. Budgeted Sales in Units 35,000 40,000 50,000 30,000 July August. September October. November December 20,000 10,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

/ 4 Practice Question (The following question is to be used for self study session) Production Sales 75% Just Toys Ltd. is a firm that produces stuff toys at the Montego Bay Free Zone. Details of the expected number of stuff toys to be produced and sold for the last two quarters of the calendar year 2003 are budgeted as follows: Selling price per toy Cost per toy: Material + Required: a) b) Direct labour Variable production overhead Fixed production overhead Quarter Ending Quarter Ending September December 30,2003 31,2003 13,000 15,000 12,000 16,000 $70 $14.00 Normal output is 56,000 units per annum and this amount is used for the calculation of fixed production overhead. Fixed production overhead accounts for the only production overhead variance. Fixed overhead expenditure and the production of stuff toys are spread evenly throughout the year. There were no stuff toys in inventory at July 1, 2003. Marketing and administrative costs are: Variable Fixed 9.00 3.00 10.00 15% of sales…
Problem 20-1A (Algo) Manufacturing: Preparing production, materials, labor, and overhead budgets LO P1 [The following information applies to the questions displayed below.] Black Diamond Company produces snowboards. Each snowboard requires 1 pounds of carbon fiber. Management reports that 6,500 snowboards and 7,500 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 165,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 5,000 snowboards and 5,500 pounds of carbon fiber in inventory. Carbon fiber costs $14 per pound. Each snowboard requires 0.5 hour of direct labor at $19 per hour. Variable overhead is budgeted at the rate of $9 per direct labor hour. The company budgets fixed overhead of $1,797,000 for the quarter. Problem 20-1A (Algo) Part 4 4. Prepare the factory overhead budget for the third quarter. BLACK DIAMOND COMPANY Factory Overhead Budget Direct labor hours needed Budgeted…
CHAPTER 11 PRODUCT PRICING AND PROFIT ANALYSIS 558 41. Casablanca, Inc., has a practical production capacity of two million units, the current year's budget was based on the production and sales of 1.4 million units during the cur- rent year. Actual statistics came out to be: production of 1.44 million units and sales of 1.2 million.. Selling price is at P20 each and the contribution margin ratio is 30%. The peso value that best quantifies the marketing division's failure to achieve budgeted performance for the current year is P4,800,000 unfavorable b. P4,000,000 unfavorable а. P1,440,000 unfavorable d. P1,200,000 unfavorable С. (грера) 42. The differences between the master budget amounts and the amounts in the flexible budget are due to Activity level variances. b. Gaps in affectivity. a. с. Favorable variances. d. Unfavorable variances. (грсра)
Question 5 Please fill in the blanks and explain.
question 2
Domestic
Problem 8-23 Comprehensive Problem [LO8-1, LO8-2, LO8-3, LO8-5, LO8-6] Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a five-year period. His annual pay raises are determined by his division’s return on investment (ROI), which has exceeded 23% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B Initial investment: Cost of equipment (zero salvage value) $ 290,000 $ 500,000 Annual revenues and costs: Sales revenues $ 350,000 $ 450,000 Variable expenses $ 160,000 $ 210,000 Depreciation expense $ 58,000 $ 100,000 Fixed out-of-pocket operating costs $ 80,000 $ 60,000 The company’s discount rate is 16%. Click here to view Exhibit 8B-1 and Exhibit 8B-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product.…
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 15,000 16,000 13,000 14,000 Budgeted unit sales The company's variable selling and administrative expense per unit is $2.50. Fixed selling and administrative expenses include advertising expenses of $8,000 per quarter, executive salaries of $35,000 per quarter, and depreciation of $20,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $8,000 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Round "Per Unit" answers to 2 decimal places.) Budgeted unit sales Variable selling and administrative expense Total fixed selling and administrative expenses Total selling and administrative expenses Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter Cash disbursements for selling and administrative expenses 3rd Quarter 4th…
nku.3
f2 Four grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.70 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. f3 First 92,000 Budgeted production, in bottles. The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 73,600 grams of musk oil will be on hand to start the first quarter of Year 2. f4 fs Second 122,000 First Mink Caress Direct Materials Budget - Year 2 f6 Year 2 Q Search 4- Third 182,000 Second f7…
Question 5 Please fill me fill in the red blanks