The production department of Hareston Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year 1st Quarter2nd Quarter3rd Quarter4th Quarten Units to be produced 8,600 9,600 7,600 6,600 In addition, the beginning raw materials inventory for the first quarter is budgeted to be 2,200 kilograms and the beginning accounts payable for the first quarter are budgeted to be $3,740. Each unit requires 3.6 kilograms of raw material that costs $3.00 per kilogram. Management desires to end each quarter with an inventory of raw materials equal to 10% of the following quarter's production needs. The desired ending inventory for the fourth quarter is 2,700 kilograms. Management plans to pay for 80% of raw material purchases in the quarter acquired and 20% in the following quarter. Each unit requires 0.6 direct labour-hours, and direct labour-hour workers are paid $22.0 per hour. Required: 1-a. Prepare the company's direct materials budget. (Round your answer to the nearest whole dollar amount.) HARESTON COMPANY Direct Materials Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total needs (kilograms)
The production department of Hareston Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year 1st Quarter2nd Quarter3rd Quarter4th Quarten Units to be produced 8,600 9,600 7,600 6,600 In addition, the beginning raw materials inventory for the first quarter is budgeted to be 2,200 kilograms and the beginning accounts payable for the first quarter are budgeted to be $3,740. Each unit requires 3.6 kilograms of raw material that costs $3.00 per kilogram. Management desires to end each quarter with an inventory of raw materials equal to 10% of the following quarter's production needs. The desired ending inventory for the fourth quarter is 2,700 kilograms. Management plans to pay for 80% of raw material purchases in the quarter acquired and 20% in the following quarter. Each unit requires 0.6 direct labour-hours, and direct labour-hour workers are paid $22.0 per hour. Required: 1-a. Prepare the company's direct materials budget. (Round your answer to the nearest whole dollar amount.) HARESTON COMPANY Direct Materials Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total needs (kilograms)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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sub question 1a, 1b, 2
Transcribed Image Text:1-b. Prepare the schedule of expected cash disbursements for materials for the upcoming fiscal year. (Round your answer to the
nearest whole dollar amount.)
BARESTON COMPANY
Schedule ofExpected Cash Disbursements for Materials
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
Accounts payable, beginning balance
1st Quarter purchase
2nd Quarter purchase
3rd Quarter purchase
4th Quarter purchase
Total cash disbursements for materials
2. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each
quarter to match the number of hours required to produce the forecasted number of units produced. (Do not round intermediate
calculations.)
HARESTON COMPANY
Direct Labour Budget
3rd Quarter
4th Quarter
Year
1st Quarter
2nd Quarter
Total direct labour-hours needed
Total direct labour cost
Transcribed Image Text:The production department of Hareston Company has submitted the following forecast of units to be produced by quarter for the
upcoming fiscal year.
1st Quarter2nd Quarter3rd Quarter4th Quarter
Units to be produced
8,600
9,600
7,600
6,600
In addition, the beginning raw materials inventory for the first quarter is budgeted to be 2,200 kilograms and the beginning accounts
payable for the first quarter are budgeted to be $3,740.
Each unit requires 3.6 kilograms of raw material that costs $3.00 per kilogram. Management desires to end each quarter with an
inventory of raw materials equal to 10% of the following quarter's production needs. The desired ending inventory for the fourth
quarter is 2,700 kilograms. Management plans to pay for 80% of raw material purchases in the quarter acquired and 20% in the
following quarter. Each unit requires 0.6 direct labour-hours, and direct labour-hour workers are paid $22.0 per hour.
Required:
1-a. Prepare the company's direct materials budget. (Round your answer to the nearest whole dollar amount.)
HARESTON COMPANY
Direct Materials Budget
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
Total needs (kilograms)
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