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

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

See similar textbooks

Similar questions

For each unit of finished goods Surf Inc. needs 3 pounds of material. The production budget is shown below for the next 4 months: Description Month 1 Month 2 Month 3 Month 4 Production Budget in Units 14,000.00 15,000.00 16,000.00 12,000.00 Prepare the material purchases budget and show the total cost of material to purchase based on the following for Months 1-3 Beg Inv Month 1 8,800.00 pounds of material Cost per pound $4.75 Required Ending Inventory 12% of next months requirement Description Month 1 Month 2 Month 3
Bonita Company's sales budget projects unit sales of part 198Z of 11,600 units in January, 13,200 units in February, and 15,800 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $2 per pound. Bonita Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2024. Prepare a production budget for January and February 2025.
ABC Company's budgeted sales for June, July, and August are 13,000, 17,000, and 14,700 units, respectively. ABC requires 40% of the next month's budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 5,200 units. Each unit that ABC Company produces uses 4 pounds of raw material. ABC requires 35% of the next month's budgeted production as raw material inventory each month. Required: Calculate the number of pounds of raw material to be purchased in June. Number of pounds
Canyon Corporation's budgeted production schedule, by quarters, for the coming year is as follows: Quarter 1= 26,500 units Quarter 2 = 23,000 units Quarter 3 = 21,000 units Quarter 4 = 28,000 units Each unit of product requires three pounds of direct material. The company's policy is to begin each quarter with 25% of that quarter's direct materials production requirements. Canyon expects to have 54,000 pounds of direct materials on hand at the beginning of Quarter 1. What would be Canyon budgeted direct materials purchases (in pounds) for the first quarter?
A company budgets production of 4,720 units in May and 6,025 units in June. Each unit requires 4 pounds of direct materials. Direct materials cost $5 per pound. The company maintains direct materials inventory equal to 40% of next month's direct materials requirement. The company has 7,552 pounds of direct materials inventory on April 30. Prepare the direct materials budget for May. Units to produce Direct Materials Budget Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases May
Atlantic Surf manufactures surfboards. The company's budgeted sales units for the next three months is shown below. Company policy is to maintain finished goods inventory equal (in units) to 40% of the next month's unit sales. As of June 30, the company has 1,760 finished surfboards in inventory. Budgeted sales units July 4,400 August 5,500 September 3,300 Prepare the production budget for the months of July and August. ATLANTIC SURF Production Budget Budgeted sales units Add: Desired ending inventory Desired ending inventory units Total required units Units to be produced July 0 August 0
ABC Company’s budgeted sales for June, July, and August are 15,000, 19,000, and 16,700 units, respectively. ABC requires 40% of the next month’s budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 6,000 units. Each unit that ABC Company produces uses 4 pounds of raw material. ABC requires 35% of the next month’s budgeted production as raw material inventory each month. Required: Calculate the number of pounds of raw material to be purchased in June.
Electro Company manufactures transmissions for electric cars. Management reports ending finished goods inventory for the first quarter at 90,000 units. The following unit sales are budgeted during the rest of the year: second quarter, 450,000 units; third quarter, 525,000 units; and fourth quarter, 475,000 units. Company policy calls for the ending finished goods inventory of a quarter to equal 20% of the next quarter's budgeted unit sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture. ELECTRO COMPANY Production Budget Next period budgeted sales units Desired ending inventory units Total required units Units to produce Second Quarter Third Quarter
Sevenbergen Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit Budgeted unit sales (all on credit) July August September October Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor vage rate. Variable selling and administrative expense Fixed selling and administrative expense Credit sales are collected: 40% in the month of the sale 60% in the following month $ 92 9,000 11,300 10,400 10,800 4 pounds $ 1.00 per pound 2.8 direct labor-hours $22.00 per direct labor- hour $ 1.50 per unit sold. $70,000 per month Raw materials purchases are paid 30% in the month of purchase 70% in the following month The ending finished goods inventory should equal 20% of the following month's sales. The ending raw materials inventory should equal 30% of the following month's raw materials production needs. The…
JSS Company’s sales budget projects unit sales of part X of 15,000 units in January, 16,000 units in February, and 17,000 units in March. Each unit of part X requires 1.5 pounds of materials, which cost $2.5 per pound. JSS Company desires its ending raw materials inventory to equal 35% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2020. Instructions (a) Prepare a production budget for January and February 2021. (b) Prepare a direct materials budget for January 2021
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
Electro Company budgets production of 670,000 electric panels in the second quarter and 740,000 electric panels in the third quarter. Each panel requires 0.80 pound of direct material at a cost of $2.00 per pound. The company desires to end each quarter with an ending inventory of this material equal to 20% of next quarter's budgeted materials requirements. Beginning inventory of this material is 107,200 pounds. Prepare a direct materials budget for the second quarter. ELECTRO COMPANY Direct Materials Budget Units to produce Materials required per unit Materials needed for production (pounds) Add: Desired ending materials inventory Total materials required Less: Beginning materials inventory Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases * Second Quarter 670,000 units 0.80 pounds 536,000 pounds