Production estimates for August for Jay Company are as follows:Estimated inventory (units), August 112,000Desired inventory (units), August 319,000Expected sales volume (units), August75,000For each unit produced, the direct materials requirements are as follows:Material A ($5 per lb.)3.0 lbs.Material B ($18 per lb.)0.5 lb.The total direct materials purchases (assuming no beginning or ending inventory ofmaterial) of Materials A and B required for August production isa. $1,080,000 for A; $648,000 for Bb. $1,080,000 for A; $1,296,000 for BOOd. $1,170,000 for A; $702,000 for BC. $1,125,000 for A; $675,000 for B

Name: Production estimates for August for Jay Company are as follows: Estimated inventory (units), August 1 12,000 Desired inventory (units), August 31 9,000 Expected sales volume…
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Answered: Production estimates for August for Jay…

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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Compute for the Economic order quantity, assuming the no of units of materials required annually 20,000 cost of placing the order P29.00, Annual Carrying cost of inventory P 5.4
INFORMATION: Brait Limited produces a single product and forecasted the following for the first three months of the year: January March February 2 400 Sales (units) 2 200 2 600 The company's policy is to maintain closing inventory at a level of 50% of the following months forecasted sales. Material and labour requirements are as follows: Material 2 kg per unit @ R60 per kg Labour 3 hours per unit Material inventory levels were as follows: December 1 100 Closing inventory (kg) January 1 250 REQUIRED: The total material purchase cost for January is: A. R276 000 B. R408 000 C... 8285 000 February 1 400 March 1 300
Production and sales estimates for June for Cardinal Co. are as follows: Estimated inventory (units), June 1 20,000 Desired inventory (units), June 30 19,000 Expected sales volume (units): Territory X 7,000 Territory Y 4,000 Territory Z 5,500 Unit sales price $20 The number of units expected to be manufactured in June is a. 12,500 units b. 13,500 units c. 11,000 units d. 15,500 units
Lens Junction sells lenses for $43 each and is estimating sales of 15,000 units in January and 19,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $14 per hour. Desired inventory levels are: Jan. 31 Feb. 28 Mar. 31 Beginning inventory Finished goods 4,300 4,900 4,900 Direct materials: silicon 8,400 9,100 9,300 Direct materials: solution 11,000 11,800 12,900
Lens Junction sells lenses for $44 each and is estimating sales of 16,000 units in January and 19,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $22 per hour. Desired inventory levels are: Jan. 31 Feb. 28 Mar. 31 Beginning inventory Finished goods 4,500 5,100 5,200 Direct materials: silicon 8,600 9,000 9,300 Direct materials: solution 11,400 12,200 12,800 c). Prepare direct materials budget for silicon. d). Prepare a direct labor budget.
2. Lens Junction has required production of 15,400 units in January and 18,100 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound and 3 ounces of solution costing $3 per ounce. Desired inventory levels are: Jan. Feb. Mar. Beginning Inventory: Finished Goods (units) 4,500 4,900 5,000 DM - Silicon (pounds) 8,500 9,100 9,200 DM - Solution (ounces) 11,200 12,000 13,000 PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e. 1,234) - no labels. All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345), except for any "per" amounts (units, pounds, ounces, or dollars), which are rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56) - no labels. Cost per Pound Desired Ending Inventory DM per Unit Ounces Needed for Production Required DM Ounces Pounds Needed for Production Units to be Produced Total Cost of DM Purchase Required DM Pounds…
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Production and saies estimates for March for the Robin Co. are as follows: Estimated inventory (units), March 1 17,700 Desired inventory (unit), March 31 19,100 Expected sales volume (units): Area M 6,500 Area L 8,300 Area O 7,900 Unit sales price $13 The number of units expected to be manufactured in March is Ob. 41,800 OC 22.700 Od. 24,100

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