The estimated quarterly production (in servings) for next year are as follows:Quarter 113,200Quarter 220,000Budgeted production in servingsRequired:Prepare a direct materials budget by quarter and in total for next year.Required production in servingsServings per caseTotal cases neededCases to be purchasedCost per caseCost of cases to be purchased$113,2000 $2Quarter 330,000Quarter20,0000 $330,000Quarter 415,2000 $415,200340$Year78,40034 Annie's Homemade prepares a direct materials budget for its ice cream base, which is the foundational component of all Ice creamflavors. It includes ingredients such as whole milk, heavy cream, and sugar that provide a "blank canvas" for creating create specificflavors. The company buys ice cream base from a supplier for $62 per case, each of which contains two 2.5-gallon bladders. Each 2.5-gallon bladder produces an average of 40 servings of ice cream. The company always maintains ending inventories equal to 20% ofnext quarter's production needs.The estimated quarterly production (in servings) for next year are as follows:Quarter 113,200Quarter 220,000Budgeted production in servingsRequired:Prepare a direct materials budget by quarter and in total for next year.Quarter 330,000Quarter 415,200

Lets understand the basics.The Direct Material Purchase Budget provides detailed information on the…

The estimated quarterly production (in servings) for next year are as follows: Quarter 1 13,200 Quarter 2 20,000 Budgeted production in servings Required: Prepare a direct materials budget by quarter and in total for next year. Required production in servings Servings per case + 1 13,200 2 Quarter 3 30,000 Quarter 20,000 3 30,000 Quarter 4 15, 200 4 15,200 34 Year 78,400 34

The estimated quarterly production (in servings) for next year are as follows: Quarter 1 13,200 Quarter 2 20,000 Budgeted production in servings Required: Prepare a direct materials budget by quarter and in total for next year. Required production in servings Servings per case + 1 13,200 2 Quarter 3 30,000 Quarter 20,000 3 30,000 Quarter 4 15, 200 4 15,200 34 Year 78,400 34

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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Sunland Inc. is preparing its annual budgets for the year ending December 31, 2025. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 480,000 240,000 Unit selling price $30 $35 Production budget: Desired ending finished goods units 36,000 18,000 Beginning finished goods units 30,000 12,000 Direct materials budget: Direct materials per unit (pounds) 2 3 Desired ending direct materials pounds 36,000 12,000 Beginning direct materials pounds 48,000 18,000 Cost per pound $3 $4 Direct labor budget: Direct labor time per unit 0.4 0.6 Direct labor rate per hour $12 $12 Budgeted income statement: Total unit cost $13 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $672,000 for product JB 50 and $432,000 for product JB 60, and administrative expenses of $648,000 for product JB 50 and $408,000 for product…
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Down Under Products' sales budget for the next four months is as follows: April May June July Unit Sales 76,000 85,000 116,000 93,000 The company wants its ending inventory levels to equal 15% of the following month's unit sales. The inventory at the end of March was 11,400 units. Required: Prepare a production budget, by month and in total, for the second quarter. Budgeted unit sales Total needs Required production in units Down Under Products, Limited Production Budget April 77,350 77,350 77,350 May 89,650 89,650 89,650 June 112,550 112,550 112,550 Quarter 0 0
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