Smart Strike Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart Strike's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, Smart Strike expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 47,000 $8.55 6,700 $16.80 February 61,000 $8.55 7,600 $16.80 March 81,000 $8.55 13,500 $16.80 April 100,000 $8.55 16,000 $16.80 Smart Strike requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 9,400 practice soccer balls and 1,340 match soccer balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. Smart Strike's policy is that 20 percent of the following month's production needs for raw materials be in ending inventory. Beginning inventory in January for all raw materials met this requirement. Required:Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming year. If required, round your answers to the nearest cent. HINT: Units Produced = Expected Sales + Desired Ending Inventory - Beginning Inventory. Direct materials purchases budget for polyvinyl chloride panels: Smart Strike CompanyDirect Materials Purchases Budget - Polyvinyl Chloride PanelsFor January and February Polyvinyl chloride panels: January February Units produced ________ ________ Direct Materials per Unit ________ ________ Direct materials for production ________ ________ Desired Ending Inventory ________ ________ Total needed ________ ________ Less: Beginning Inventory ________ ________ Direct materials purchases ________ ________ Direct materials purchases budget for bladder and valve: Smart Strike CompanyDirect Materials Purchases Budget - Bladder and ValveFor January and February Bladder and valve: January February Units produced ________ ________ Direct Materials per Unit ________ ________ Direct materials for production ________ ________ Desired ending Inventory ________ ________ Total needed ________ ________ Less: Beginning Inventory ________ ________ Direct materials purchases ________ ________ Direct materials purchases budget for glue: Smart Strike CompanyDirect Materials Purchases Budget - GlueFor January and February Glue: January February Units produced ________ ________ Direct Materials per Unit ________ ________ Direct materials for production ________ ________ Desired Ending Inventory ________ ________ Total needed ________ ________ Less: Beginning Inventory ________ ________ Direct materials purchases ________ ________

Smart Strike Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart Strike's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, Smart Strike expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 47,000 $8.55 6,700 $16.80 February 61,000 $8.55 7,600 $16.80 March 81,000 $8.55 13,500 $16.80 April 100,000 $8.55 16,000 $16.80 Smart Strike requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 9,400 practice soccer balls and 1,340 match soccer balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. Smart Strike's policy is that 20 percent of the following month's production needs for raw materials be in ending inventory. Beginning inventory in January for all raw materials met this requirement. Required:Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming year. If required, round your answers to the nearest cent. HINT: Units Produced = Expected Sales + Desired Ending Inventory - Beginning Inventory. Direct materials purchases budget for polyvinyl chloride panels: Smart Strike CompanyDirect Materials Purchases Budget - Polyvinyl Chloride PanelsFor January and February Polyvinyl chloride panels: January February Units produced Direct Materials per Unit Direct materials for production Desired Ending Inventory Total needed Less: Beginning Inventory Direct materials purchases Direct materials purchases budget for bladder and valve: Smart Strike CompanyDirect Materials Purchases Budget - Bladder and ValveFor January and February Bladder and valve: January February Units produced Direct Materials per Unit Direct materials for production Desired ending Inventory Total needed Less: Beginning Inventory Direct materials purchases Direct materials purchases budget for glue: Smart Strike CompanyDirect Materials Purchases Budget - GlueFor January and February Glue: January February Units produced Direct Materials per Unit Direct materials for production Desired Ending Inventory Total needed Less: Beginning Inventory Direct materials purchases

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

	Practice Balls	Match Balls
	Units	Selling Price	Units	Selling Price
January	47,000	$8.55	6,700	$16.80
February	61,000	$8.55	7,600	$16.80
March	81,000	$8.55	13,500	$16.80
April	100,000	$8.55	16,000	$16.80

Smart Strike requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 9,400 practice soccer balls and 1,340 match soccer balls.

Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. Smart Strike's policy is that 20 percent of the following month's production needs for raw materials be in ending inventory. Beginning inventory in January for all raw materials met this requirement.

Required:Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming year. If required, round your answers to the nearest cent.

HINT: Units Produced = Expected Sales + Desired Ending Inventory - Beginning Inventory.

Direct materials purchases budget for polyvinyl chloride panels:

Smart Strike CompanyDirect Materials Purchases Budget - Polyvinyl Chloride PanelsFor January and February

Polyvinyl chloride panels:	January	February
Units produced	________	________
Direct Materials per Unit	________	________
Direct materials for production	________	________
Desired Ending Inventory	________	________
Total needed	________	________
Less: Beginning Inventory	________	________
Direct materials purchases	________	________

Direct materials purchases budget for bladder and valve:

Smart Strike CompanyDirect Materials Purchases Budget - Bladder and ValveFor January and February

Bladder and valve:	January	February
Units produced	________	________
Direct Materials per Unit	________	________
Direct materials for production	________	________
Desired ending Inventory	________	________
Total needed	________	________
Less: Beginning Inventory	________	________
Direct materials purchases	________	________

Direct materials purchases budget for glue:

Smart Strike CompanyDirect Materials Purchases Budget - GlueFor January and February

Glue:	January	February
Units produced	________	________
Direct Materials per Unit	________	________
Direct materials for production	________	________
Desired Ending Inventory	________	________
Total needed	________	________
Less: Beginning Inventory	________	________
Direct materials purchases	________	________

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here