Required informationRamos Co. provides the following sales forecast and production budget for the next four months.Sales (units)Budgeted production (units)April560500Prepare a direct materials budget for April, May, and June.Budget production (units)The company plans for finished goods inventory of 180 units at the end of June. In addition, each finished unit requires 6pounds of direct materials and the company wants to end each month with direct materials inventory equal to 25% of nextmonth's production needs. Beginning direct materials inventory for April was 750 pounds. Direct materials cost $3 perpound. Each finished unit requires 0.20 hours of direct labor at the rate of $22 per hour. The company budgets variableoverhead at the rate of $26 per direct labor hour and budgets fixed overhead of $8,600 per month.RAMOS CO.Direct Materials BudgetFor April, May, and JuneApril500May640630< PrevMayJune5906006301 2July660600June600 unitsof 3GNext >O the hunt. InThe company has to be yours iventory ofpounds of direct materials and the company wants to end each month with direct materials inventory equal to 25% of nemonth's production needs. Beginning direct materials inventory for April was 750 pounds. Direct materials cost $3 perpound. Each finished unit requires 0.20 hours of direct labor at the rate of $22 per hour. The company budgets variableoverhead at the rate of $26 per direct labor hour and budgets fixed overhead of $8,600 per month.Prepare a direct materials budget for April, May, and June.Budget production (units)Materials needed for production (lbs.)Total materials requirements (lbs.)RAMOS CO.Direct Materials BudgetFor April, May, and JuneAprilMaterials to be purchased (lbs.)Materials price per poundBudgeted cost of direct materials purchases▬▬O5000PrevMay6300June600 units1 2 of 300HHNext >***********

The Direct materials purchase budget becomes the base for the purpose of determining the materials…

Required information Ramos Co. provides the following sales forecast and production budget for the next four months. Sales (units) Budgeted production (units) April 560 500 Prepare a direct materials budget for April, May, and June. Budget production (units) The company plans for finished goods inventory of 180 units at the end of June. In addition, each finished unit requires 6 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 25% of next month's production needs. Beginning direct materials inventory for April was 750 pounds. Direct materials cost $3 per pound. Each finished unit requires 0.20 hours of direct labor at the rate of $22 per hour. The company budgets variable overhead at the rate of $26 per direct labor hour and budgets fixed overhead of $8,600 per month. RAMOS CO. Direct Materials Budget For April, May, and June April May 640 630 500 May June 590 600 630 July 660 600 June 600 units

Required information Ramos Co. provides the following sales forecast and production budget for the next four months. Sales (units) Budgeted production (units) April 560 500 Prepare a direct materials budget for April, May, and June. Budget production (units) The company plans for finished goods inventory of 180 units at the end of June. In addition, each finished unit requires 6 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 25% of next month's production needs. Beginning direct materials inventory for April was 750 pounds. Direct materials cost $3 per pound. Each finished unit requires 0.20 hours of direct labor at the rate of $22 per hour. The company budgets variable overhead at the rate of $26 per direct labor hour and budgets fixed overhead of $8,600 per month. RAMOS CO. Direct Materials Budget For April, May, and June April May 640 630 500 May June 590 600 630 July 660 600 June 600 units

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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