Question:2,3,4 Perine Company has 3, 214 pounds of raw materials in its December 31, 2016, ending inventory. Required production for January and February of 2017 are 4,120 and 5,670 units, respectively. 3 pounds of raw materials are needed for each unit, and the estimated cost per pound is $9. Management desires an ending inventory equal to 26% of next month's materials requirements. Prepare the direct materials budget for January. (Round Intermediate calculations and final answer to 0 decimal places, e.g. 5, 275.) Strand Company is planning to sell 400 buckets and produce 380 buckets during March. Each bucket requires 500 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 500 grams and employees of the company are paid $15.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Strand has 300 kilos of plastic in the beginning inventory and wants to have 200 kilos in the ending inventory. How much is the total amount of budgeted direct labor for March? During July, the cutting department completed 9,000 units of a product that had a standard materials cost of 2.5 square feet per unit at $2.25 per square foot. The actual materials purchased consisted of 18,000 square feet at $2.50 per square foot, for a total cost of $45,000. The actual material used during this period was 20,000 square feet.Compute the materials price and usage variances.
Question:2,3,4 Perine Company has 3, 214 pounds of raw materials in its December 31, 2016, ending inventory. Required production for January and February of 2017 are 4,120 and 5,670 units, respectively. 3 pounds of raw materials are needed for each unit, and the estimated cost per pound is $9. Management desires an ending inventory equal to 26% of next month's materials requirements. Prepare the direct materials budget for January. (Round Intermediate calculations and final answer to 0 decimal places, e.g. 5, 275.) Strand Company is planning to sell 400 buckets and produce 380 buckets during March. Each bucket requires 500 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 500 grams and employees of the company are paid $15.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Strand has 300 kilos of plastic in the beginning inventory and wants to have 200 kilos in the ending inventory. How much is the total amount of budgeted direct labor for March? During July, the cutting department completed 9,000 units of a product that had a standard materials cost of 2.5 square feet per unit at $2.25 per square foot. The actual materials purchased consisted of 18,000 square feet at $2.50 per square foot, for a total cost of $45,000. The actual material used during this period was 20,000 square feet.Compute the materials price and usage variances.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 5E: Prepare a cost of goods sold budget for MacLaren Manufacturing Inc. for the year ended December 31,...
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Transcribed Image Text:Question:2,3,4
Perine Company has 3, 214 pounds of raw materials in its December
31, 2016, ending inventory. Required production for January and
February of 2017 are 4,120 and 5,670 units, respectively. 3 pounds of
raw materials are needed for each unit, and the estimated cost per
pound is $9. Management desires an ending inventory equal to 26% of
next month's materials requirements. Prepare the direct materials
budget for January. (Round Intermediate calculations and final answer
to 0 decimal places, e.g. 5, 275.)
Strand Company is planning to sell 400 buckets and produce 380
buckets during March. Each bucket requires 500 grams of plastic and
one-half hour of direct labor. Plastic costs $10 per 500 grams and
employees of the company are paid $15.00 per hour. Manufacturing
overhead is applied at a rate of 110% of direct labor costs. Strand has
300 kilos of plastic in the beginning inventory and wants to have 200
kilos in the ending inventory. How much is the total amount of budgeted
direct labor for March?
During July, the cutting department completed 9,000 units of a product
that had a standard materials cost of 2.5 square feet per unit at $2.25
per square foot. The actual materials purchased consisted of 18,000
square feet at $2.50 per square foot, for a total cost of $45,000. The
actual material used during this period was 20,000 square
feet.Compute the materials price and usage variances.
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