The Howell Company has prepared a sales budget of 43,000 finished units for a 3-month period. The company has an inventory of 13,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 14,000 units at the end of the succeeding quarter. It takes 2 gallons of direct materials to make one unit of finished product. The company has inventory of 64,000 gallons of direct materials at December 31 and has a target ending inventory of 52.000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Howell Company purchase during the 3 months ending March 31? Select the labels and enter the amounts to calculate the direct materials (gallons) to be purchased. Direct Material Purchases Budget For the 3 Months Ending March 31 Add beginning inventory Add target ending inventory Deduct beginning inventory Deduct target ending inventory Inco 1/4)
The Howell Company has prepared a sales budget of 43,000 finished units for a 3-month period. The company has an inventory of 13,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 14,000 units at the end of the succeeding quarter. It takes 2 gallons of direct materials to make one unit of finished product. The company has inventory of 64,000 gallons of direct materials at December 31 and has a target ending inventory of 52.000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Howell Company purchase during the 3 months ending March 31? Select the labels and enter the amounts to calculate the direct materials (gallons) to be purchased. Direct Material Purchases Budget For the 3 Months Ending March 31 Add beginning inventory Add target ending inventory Deduct beginning inventory Deduct target ending inventory Inco 1/4)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:The Howell Company has prepared a sales budget of 43,000 finished units for a 3-month period. The company has an inventory of 13,000 units of finished goods on
hand at December 31 and has a target finished goods inventory of 14,000 units at the end of the succeeding quarter.
It takes 2 gallons of direct materials to make one unit of finished product. The company has inventory of 64,000 gallons of direct materials at December 31 and has a
target ending inventory of 52.000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Howell Company purchase during the 3
months ending March 31?
Select the labels and enter the amounts to calculate the direct materials (gallons) to be purchased.
Direct Material Purchases Budget
For the 3 Months Ending March 31
Add beginning inventory
Add target ending inventory
Deduct beginning inventory
Deduct target ending inventory
Inco
1/4)
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