Question:1157 Samano Industries has adopted the following production budget for the four quarters of 2020: Quarter 1 Quarter 2 Quarter 3 Units 6,100 7,800 Quarter 4 9,200 10,200 Each unit requires 4 kg of raw materials costing $6 per kilogram. On December 31, 2019, the ending raw materials inventory was 1,900 kg. Management wants to have a raw materials inventory at the beginning of each quarter equal to 30% of the current quarter's production requirements. The production budget for the first quarter of 2021 will be 12,200 units. Prepare a direct materials purchases budget by quarters for 2020.2,Conrad, Inc. recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records.11 Cost of Goods Sold Work-in-Process Inventory, Beginning Work-in-Process Inventory, Ending Selling and Administrative Expense Finished Goods Inventory, Ending Finished Goods Inventory, Beginning Direct Materials Used Factory Overhead Applied Operating Income Direct Materials Inventory, Beginning Direct Materials Inventory, Ending Cost of Goods Manufactured $ 65,000 $10,500 $9,000 $ 15,000 $ 15,000 $ 12,000 $ 14,000 $ 11,000 $6,000 $ 60,000 Direct labor costs incurred during the period amounted to 1.5 times the factory overhead. The CFO of Fisher, Inc. has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount of direct materials purchased?
Question:1157 Samano Industries has adopted the following production budget for the four quarters of 2020: Quarter 1 Quarter 2 Quarter 3 Units 6,100 7,800 Quarter 4 9,200 10,200 Each unit requires 4 kg of raw materials costing $6 per kilogram. On December 31, 2019, the ending raw materials inventory was 1,900 kg. Management wants to have a raw materials inventory at the beginning of each quarter equal to 30% of the current quarter's production requirements. The production budget for the first quarter of 2021 will be 12,200 units. Prepare a direct materials purchases budget by quarters for 2020.2,Conrad, Inc. recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records.11 Cost of Goods Sold Work-in-Process Inventory, Beginning Work-in-Process Inventory, Ending Selling and Administrative Expense Finished Goods Inventory, Ending Finished Goods Inventory, Beginning Direct Materials Used Factory Overhead Applied Operating Income Direct Materials Inventory, Beginning Direct Materials Inventory, Ending Cost of Goods Manufactured $ 65,000 $10,500 $9,000 $ 15,000 $ 15,000 $ 12,000 $ 14,000 $ 11,000 $6,000 $ 60,000 Direct labor costs incurred during the period amounted to 1.5 times the factory overhead. The CFO of Fisher, Inc. has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount of direct materials purchased?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 2CE: Refer to Cornerstone Exercise 8.1, through Requirement 1. FlashKick requires ending inventory of...
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Transcribed Image Text:Question:1157
Samano Industries has adopted the following production budget for the
four quarters of 2020:
Quarter 1 Quarter 2 Quarter 3
Units
6,100
7,800
Quarter 4
9,200
10,200
Each unit requires 4 kg of raw materials costing $6 per kilogram. On
December 31, 2019, the ending raw materials inventory was 1,900 kg.
Management wants to have a raw materials inventory at the beginning
of each quarter equal to 30% of the current quarter's production
requirements. The production budget for the first quarter of 2021 will be
12,200 units. Prepare a direct materials purchases budget by quarters
for 2020.2,Conrad, Inc. recently lost a portion of its records in an office
fire. The following information was salvaged from the accounting
records.11
Cost of Goods Sold
Work-in-Process Inventory, Beginning
Work-in-Process Inventory, Ending
Selling and Administrative Expense
Finished Goods Inventory, Ending
Finished Goods Inventory, Beginning
Direct Materials Used
Factory Overhead Applied
Operating Income
Direct Materials Inventory, Beginning
Direct Materials Inventory, Ending
Cost of Goods Manufactured
$ 65,000
$10,500
$9,000
$ 15,000
$ 15,000
$ 12,000
$ 14,000
$ 11,000
$6,000
$ 60,000
Direct labor costs incurred during the period amounted to 1.5 times the
factory overhead. The CFO of Fisher, Inc. has asked you to recalculate
the following accounts and to report to him by the end of the day. What
is the amount of direct materials purchased?
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