The production budget for Juno & Jones, Inc. shows the company expects to produce 400 units in the first quarter and 630 units in the second quarter. Each unit will require 11 pounds of direct materials at a cost of $1.90 per pound. The company prefers to maintain raw materials inventory equal to 40% of the next quarters materials needs. Prepare a production budget for the first quarter. Juno & Jones, Inc.Direct Materials BudgetFirst Quarter Budgeted units to be produced   Pounds of materials required per unit   Total pounds of materials needed in production   Plus desired ending inventory in pounds   Total direct materials needed   Less pounds of materials in beginning inventory   Total Pounds of Direct Materials to be purchased   Cost of materials per pound   Total cost of materials to be purchased              Direct Materials cost per unit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The production budget for Juno & Jones, Inc. shows the company expects to produce 400 units in the first quarter and 630 units in the second quarter. Each unit will require 11 pounds of direct materials at a cost of $1.90 per pound. The company prefers to maintain raw materials inventory equal to 40% of the next quarters materials needs.

Prepare a production budget for the first quarter.

Juno & Jones, Inc.Direct Materials BudgetFirst Quarter
Budgeted units to be produced  
Pounds of materials required per unit  
Total pounds of materials needed in production  
Plus desired ending inventory in pounds  
Total direct materials needed  
Less pounds of materials in beginning inventory  
Total Pounds of Direct Materials to be purchased  
Cost of materials per pound  
Total cost of materials to be purchased             
Direct Materials cost per unit  
 
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