Problem solving41A. Great Lakes Inc. makes and sells t-shirts. Each t-shirt uses 1.5 metres of fabric. Budgeted production of t-shirts in units for the nextfive months is as follows:MayJuneBudgeted production 32,000 28,000The company wants to maintain monthly ending inventories of fabric equal to 15% of the following month's budgeted productionneeds. The cost of fabric is $3.50 per metre. Prepare a direct materials purchases budget for the month of July.July August September26,000 24,000 22,00041B. Camping Out Co. manufactures down sleeping bags. Each sleeping bag requires 4 kilograms of down and takes .3 hours of directlabour. The standard cost of the down used by Camping Out is $8 per kilogram and the standard labour cost is $10 per hour. InNovember, Camping Out purchased 15,000 kilograms of down for $120,750. During the year, the company manufactured 4,000 sleepingbags. Payroll reported a total of 1,480 direct labour hours at a cost of $14,060.Instructionsa.b.Calculate the materials price and quantity variances and indicate whether the variances are favourable or unfavourable.Calculate the labour price and quantity variances and indicate whether the variances are favourable or unfavourable.

Lets understand the basics. Budget is prepared by the management in order to estimate future profit…

Problem solving 41A. Great Lakes Inc. makes and sells t-shirts. Each t-shirt uses 1.5 metres of fabric. Budgeted production of t-shirts in units for the nex five months is as follows: May June Budgeted production 32,000 28,000 July August September 26,000 24,000 22,000 The company wants to maintain monthly ending inventories of fabric equal to 15% of the following month's budgeted production needs. The cost of fabric is $3.50 per metre. Prepare a direct materials purchases budget for the month of July.

Problem solving 41A. Great Lakes Inc. makes and sells t-shirts. Each t-shirt uses 1.5 metres of fabric. Budgeted production of t-shirts in units for the nex five months is as follows: May June Budgeted production 32,000 28,000 July August September 26,000 24,000 22,000 The company wants to maintain monthly ending inventories of fabric equal to 15% of the following month's budgeted production needs. The cost of fabric is $3.50 per metre. Prepare a direct materials purchases budget for the month of July.

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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