! Required information [The following information applies to the questions displayed below.] Vista Electronics, Inc., manufactures two different types of coils used in electric motors. In the fall of the current year, Erica Becker, the controller, compiled the following data. • Sales forecast for 20x0 (all units to be shipped in 20x0): Product Units Price Light coil 52,000 $220 Heavy coil 32,000 320 • Raw-material prices and inventory levels: Expected Inventories, January 1, 20x0 30,000 lb. 27,000 lb. 5,200 units Raw Material Sheet metal Copper wire Platform • Use of raw material: Raw Material Sheet metal Copper wire Platform • Direct-labor requirements and rates: Product Light coil Heavy coil Hours per Unit 5 7 Product Light coil Heavy coil Amount Used per Unit Heavy Coil • Finished-goods inventories (in units): Light Coil 5 lb. 3 lb. • Production overhead: Raw Material Sheet metal Copper wire Platforms Total 6 lb. 4 lb. 2 unit Rate per Hour $ 10 15 Expected Desired January 1, 20x0 December 31, 20x0 17,000 9,500 Overhead Cost Item Purchasing and material handling Depreciation, utilities, and inspection Shipping General production overhead 22,000 10,500 Desired Inventories, December 31, 20x0 34,000 lb. 30,000 lb. 6,200 units 4. Prepare the raw material purchases budget (in dollars) for 20x0. Raw Material Purchases Budget for 20x0 Raw Material Required (units) Anticipated Purchase Price $ Anticipated Purchase Price $ 14 Activity-Based Budget Rate $0.80 per pound of sheet metal and copper wire purchased $7.00 per coil produced (either type) $1.00 per coil shipped (either type) $5.00 per direct-labor hour Total 8 4
! Required information [The following information applies to the questions displayed below.] Vista Electronics, Inc., manufactures two different types of coils used in electric motors. In the fall of the current year, Erica Becker, the controller, compiled the following data. • Sales forecast for 20x0 (all units to be shipped in 20x0): Product Units Price Light coil 52,000 $220 Heavy coil 32,000 320 • Raw-material prices and inventory levels: Expected Inventories, January 1, 20x0 30,000 lb. 27,000 lb. 5,200 units Raw Material Sheet metal Copper wire Platform • Use of raw material: Raw Material Sheet metal Copper wire Platform • Direct-labor requirements and rates: Product Light coil Heavy coil Hours per Unit 5 7 Product Light coil Heavy coil Amount Used per Unit Heavy Coil • Finished-goods inventories (in units): Light Coil 5 lb. 3 lb. • Production overhead: Raw Material Sheet metal Copper wire Platforms Total 6 lb. 4 lb. 2 unit Rate per Hour $ 10 15 Expected Desired January 1, 20x0 December 31, 20x0 17,000 9,500 Overhead Cost Item Purchasing and material handling Depreciation, utilities, and inspection Shipping General production overhead 22,000 10,500 Desired Inventories, December 31, 20x0 34,000 lb. 30,000 lb. 6,200 units 4. Prepare the raw material purchases budget (in dollars) for 20x0. Raw Material Purchases Budget for 20x0 Raw Material Required (units) Anticipated Purchase Price $ Anticipated Purchase Price $ 14 Activity-Based Budget Rate $0.80 per pound of sheet metal and copper wire purchased $7.00 per coil produced (either type) $1.00 per coil shipped (either type) $5.00 per direct-labor hour Total 8 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Visno
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Required information
[The following information applies to the questions displayed below.]
Vista Electronics, Inc., manufactures two different types of coils used in electric motors. In the fall of the current year, Erica
Becker, the controller, compiled the following data.
• Sales forecast for 20x0 (all units to be shipped in 20x0):
Price
$ 220
320
Units
Product
Light coil 52,000
Heavy coil 32,000
• Raw-material prices and inventory levels:
Expected Inventories,
January 1, 20x0
30,000 lb.
27,000 lb.
5,200 units
Raw Material
Sheet metal
Copper wire
Platform
• Use of raw material:
Raw Material
Sheet metal
Copper wire
Platform
• Direct-labor requirements and rates:
Hours per Unit
Product
Light coil
Heavy coil
5
7
Product
Light coil
Heavy coil
Amount Used per Unit
Heavy Coil
6 lb.
4 lb.
2 unit
• Finished-goods inventories (in units):
Light Coil
5 lb.
3 lb.
• Production overhead:
Raw Material
Sheet metal
Copper wire
Platforms
Total
Expected
Desired
January 1, 20x0 December 31, 20x0
17,000
9,500
Rate per Hour
$ 10
15
Overhead Cost Item
Purchasing and material handling.
Depreciation, utilities, and inspection
Shipping
General production overhead.
Desired Inventories,
December 31, 20x0.
34,000 lb.
30,000 lb.
6,200 units
22,000
10,500
4. Prepare the raw material purchases budget (in dollars) for 20x0.
Raw Material Purchases Budget for 20x0
Raw Material
Anticipated
Required (units) Purchase Price
$
Activity-Based Budget Rate
$0.80 per pound of sheet metal and copper wire purchased
$7.00 per coil produced (either type)
$1.00 per coil shipped (either type)
$5.00 per direct-labor hour
Total
Anticipated
Purchase Price
$ 14
8
4
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e6cceeb-9ae9-437d-b0c8-71dc538b5f6a%2Fe25cd7f3-09f1-431d-8304-2347053dbe52%2Ft93ks8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Vista Electronics, Inc., manufactures two different types of coils used in electric motors. In the fall of the current year, Erica
Becker, the controller, compiled the following data.
• Sales forecast for 20x0 (all units to be shipped in 20x0):
Price
$ 220
320
Units
Product
Light coil 52,000
Heavy coil 32,000
• Raw-material prices and inventory levels:
Expected Inventories,
January 1, 20x0
30,000 lb.
27,000 lb.
5,200 units
Raw Material
Sheet metal
Copper wire
Platform
• Use of raw material:
Raw Material
Sheet metal
Copper wire
Platform
• Direct-labor requirements and rates:
Hours per Unit
Product
Light coil
Heavy coil
5
7
Product
Light coil
Heavy coil
Amount Used per Unit
Heavy Coil
6 lb.
4 lb.
2 unit
• Finished-goods inventories (in units):
Light Coil
5 lb.
3 lb.
• Production overhead:
Raw Material
Sheet metal
Copper wire
Platforms
Total
Expected
Desired
January 1, 20x0 December 31, 20x0
17,000
9,500
Rate per Hour
$ 10
15
Overhead Cost Item
Purchasing and material handling.
Depreciation, utilities, and inspection
Shipping
General production overhead.
Desired Inventories,
December 31, 20x0.
34,000 lb.
30,000 lb.
6,200 units
22,000
10,500
4. Prepare the raw material purchases budget (in dollars) for 20x0.
Raw Material Purchases Budget for 20x0
Raw Material
Anticipated
Required (units) Purchase Price
$
Activity-Based Budget Rate
$0.80 per pound of sheet metal and copper wire purchased
$7.00 per coil produced (either type)
$1.00 per coil shipped (either type)
$5.00 per direct-labor hour
Total
Anticipated
Purchase Price
$ 14
8
4
0
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