The production planning team of Red Velvet Inc showed that each product requires 3 units of raw materials costing 10 each. The inventory manager requires that 20% of the total raw materials purchased during the month must be kept as monthly ending inventory to avoid shortage The marketing team estimates that the demand of the product is 10,000 units in September 12,000 units in October, and 15,000 units in November. The starting inventory in September for the raw materials is 7,200 units. 1. What is the total units of raw materials needed to be purchased on the month of September to meet the requirements of different departments? 2. What is the total units of raw materials needed for the production of October estimated demand?

The production planning team of Red Velvet Inc showed that each product requires 3 units of raw materials costing 10 each. The inventory manager requires that 20% of the total raw materials purchased during the month must be kept as monthly ending inventory to avoid shortage The marketing team estimates that the demand of the product is 10,000 units in September 12,000 units in October, and 15,000 units in November. The starting inventory in September for the raw materials is 7,200 units. 1. What is the total units of raw materials needed to be purchased on the month of September to meet the requirements of different departments? 2. What is the total units of raw materials needed for the production of October estimated demand?

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

HandMI Corp. manufactures organic cotton totes in Michigan. The company estimates its production for the next four months as follows: July 5,200 units, August 7,800 units, September 7,900 units, October 8,800 units. Each tote requires 0.7 square meters of cotton. The company's cotton inventory policy is 40% of next month’s production needs. On July 1 cotton inventory was expected to be 1,456 square meters. What will cotton purchases be in July? Multiple Choice 5,393 square meters 4,118 square meters 4,518 square meters 4,368 square meters
Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that May's ending inventory will consist of 28,200 units. June and July sales are estimated to be 282.000 and 292.000 units, respectively. Trago assigns variable overhead at a rate of $2.00 per unit of production. Fixed overhead equals $402.000 per month. Compute the total budgeted overhead for June Multiple Choice $978,000. $968.000 $566.000. $966.000. $986,000
Ceder Company has compiled the following data for the upcoming year: Sales are expected to be 16,000 units at $52 each. Each unit requires 4 pounds of direct materials at $2.40 per pound. Each unit requires 2.1 hours of direct labor at $13 per hour. Manufacturing overhead is $4.90 per unit. Beginning direct materials inventory is $5,400. Ending direct materials inventory is $6,950. Selling and administrative costs totaled $138,720. Determine Ceder's budgeted cost of goods sold. Complete Ceder's budgeted income statement.
Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear feet of bamboo, which costs $2.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month’s sales. Ending direct materials inventory should be 30 percent of next month’s production. Expected unit sales (frames) for the upcoming months follow: March 280 April 260 May 310 June 410 July 385 August 435 Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,800 ($650 per month) for expected production of 3,000 units for the year. Selling and administrative expenses are estimated at $700 per month plus $0.50 per unit sold. Iguana, Inc., had $10,900 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credit…
The following information is located in the production department of Mindy Ca Second First Quarter 14,300 Quarter Third Quarter Fourth Quarter 21,000 22,500 21,300 Units produced Other information found in the production department includes: Prior Year Ending RM Inventory Prior Year Ending A/P Pounds of RM per unit The ending raw material inventory per month should be 25% of the following month's production needs. The desired ending inventory for the fourth quarter is 3,700 pounds. Management plans to pay for 70% of the raw material purchases in the month bought and 30% in the following month. Direct Materials Budget Question: Given the data, the second quarter direct materials budget should be: Costs of Raw Materials per pound 5. $ Cost of DM Purchased: 10,725 11,775 First Second Quarter Quarter Third Quarter Fourth Quarter $ 4.50 $ 4.50 $ 4.50 $ 4.50
Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $14 per hour. Iguana has the following inventory policies: • Ending finished goods inventory should be 40 percent of next month's sales. Ending direct materials inventory should be 30 percent of next month's production. Expected unit sales (frames) for the upcoming months follow: March April May June July August 315 330 380 480 455 505 Variable manufacturing overhead is incurred at a rate of $0.60 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 3,000 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.50 per unit sold. Iguana, Inc., had $11,000 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credit sales, 50 percent is…
Paula Corporation reports the following for this month: The beginning inventory is 30 units. It produces 140 units during this month. And 150 units are sold at $3,000 each. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 200 units, the same every month. Variable costs: manufacturing cost per unit = $100; the operating cost per unit = $20 Total Fixed costs: budgeted manufacturing costs = $7,000; operating costs = $36,000 How much is the unit product cost if the company uses absorption costing? $100 $120 $150 $335 $315 $135