Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year20x1. Five units of raw material are required to produce each unit of finished product.Raw materialWork in processFinished goodsJanuary 1 December 3136,00017,00098,00051,00017,00062,000Required:1. If Bodin Company plans to sell 472,000 units during the year, compute the number of units the firm would have to manufactureduring the year.2. If 509,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to bepurchased.1. Required production in units2. Raw material purchases in units< Prev1 of 5Next >cBook Pro<>6)UGKCV.N

Production units = Sales units + Finished Inventory- Beginning Inventory

Answered: Required: 1. If Bodin Company plans to…

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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1. Golf Corporation estimates that its production for the coming year will be 25,000 units, which is 90% of normal capacity, with the following units costs: Materials P50 Direct labor 90 Direct labor is paid at the rate of P25 per hour. The machine should be run 20 minutes to produce one unit. Total estimated overhead is expected to consist of P900,000 for variable overhead and P900,000 for fixed overhead. g. What is the predetermined overhead rate base on material cost using the normal capacity level? h. What is the overhead rate base on machine hours using the normal capacity activity level?
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Required: 1. If Bodin Company plans to sell 472,000 units during the year, compute the number of units the firm would have to manufacture during the year. 2. If 509,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be purchased.