Requirement Prepare the Direct Materials Budget for Wisniewski Inc. Company. Company policy calls for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 5,796 lbs of materials, which complies with the policy. The company expects to have 10,080 lbs. of materials in inventory at year-end. The product's manufacturing cost is $211 per unit, including per unit costs of $84 for materials (6 lbs. at $14 per Ib.), $96 for direct labor (4 hours x $24 direct labor rate per hour), $19 for variable overhead, and $12 for fixed overhead. Show less A Wisniewski Inc. Direct Materials Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qtr. Fourth Qtr. Total Budgeted production (units) 1,932 2,072 2,240 3,024 Materials requirements per unit 6.0 6.0 6.0 6.0 Materials needed for production (pounds) 11,592 12,432 13,440 18,144 Budgeted ending inventory (units) Total materials requirements (pounds) Budgeted beginning inventory (units) Materials to be purchased (pounds) Material price per pound 14.00 S 14.00 S 14.00 $ 14.00 Total cost of direct materials purchases < Production Budget Direct Lbr Budget >

Requirement Prepare the Direct Materials Budget for Wisniewski Inc. Company. Company policy calls for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 5,796 lbs of materials, which complies with the policy. The company expects to have 10,080 lbs. of materials in inventory at year-end. The product's manufacturing cost is $211 per unit, including per unit costs of $84 for materials (6 lbs. at $14 per Ib.), $96 for direct labor (4 hours x $24 direct labor rate per hour), $19 for variable overhead, and $12 for fixed overhead. Show less A Wisniewski Inc. Direct Materials Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qtr. Fourth Qtr. Total Budgeted production (units) 1,932 2,072 2,240 3,024 Materials requirements per unit 6.0 6.0 6.0 6.0 Materials needed for production (pounds) 11,592 12,432 13,440 18,144 Budgeted ending inventory (units) Total materials requirements (pounds) Budgeted beginning inventory (units) Materials to be purchased (pounds) Material price per pound 14.00 S 14.00 S 14.00 $ 14.00 Total cost of direct materials purchases < Production Budget Direct Lbr Budget >

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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