The production budget for Juno & Jones, Inc. shows the company expects to produce 450 units in the first quarter and 670 units in the second quarter. Each unit will require 11 pounds of direct materials at a cost of $2.00 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 Budget First 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
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
The production budget for Juno & Jones, Inc. shows the company expects to produce 450 units in
the first quarter and 670 units in the second quarter. Each unit will require 11 pounds of direct
materials at a cost of $2.00 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 Budget
First 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
Transcribed Image Text:The production budget for Juno & Jones, Inc. shows the company expects to produce 450 units in the first quarter and 670 units in the second quarter. Each unit will require 11 pounds of direct materials at a cost of $2.00 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 Budget First 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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education