The Tiger Jungle Company produces two different styles of jeans, Waking Life and Slacker Life. The company's sales budget estimates that 420,000 of the Waking Life jeans and 239,000 of the Slacker Life jeans will be sold during the year. The company begins with 15,500 pairs of Waking Life and 11,500 pairs of Slacker Life. The company desires ending inventory of 17,000 of Waking Life and 8,500 of Slacker Life. Prepare a production budget for the year. TIGER JUNGLE COMPANY Production Budget For the Year Ending December 31, 20Y9 Waking Life Slacker Life Expected to be Plus inventory Total Less inventory Total to be

The Tiger Jungle Company produces two different styles of jeans, Waking Life and Slacker Life. The company's sales budget estimates that 420,000 of the Waking Life jeans and 239,000 of the Slacker Life jeans will be sold during the year. The company begins with 15,500 pairs of Waking Life and 11,500 pairs of Slacker Life. The company desires ending inventory of 17,000 of Waking Life and 8,500 of Slacker Life. Prepare a production budget for the year. TIGER JUNGLE COMPANY Production Budget For the Year Ending December 31, 20Y9 Waking Life Slacker Life Expected to be Plus inventory Total Less inventory Total to be

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

Magnolia, Inc., manufactures bedding sets. The budgeted production is for 22,400 comforters this year. Each comforter requires 7 yards of material. The estimated January 1 beginning inventory is 5,930 yards with the desired ending balance of 4,200 yards of material. If the material costs $3.90 per yard, determine the materials budget for the year.
Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It plans production of 240,000 units in the second quarter and 52,500 units in the third quarter. Raw material inventory is 43,200 pounds at the beginning of the second quarter. Other information follows: Direct materials. Each unit requires 0.60 pounds of raw material, priced at $175 per pound. The company plans to end each quarter with an ending inventory of materials equal to 30% of next quarter's budgeted materials requirements. Prepare a direct materials budget for the second quarter. (Enter "per unit" answers in two decimal places.) Units to be produced RIDA INC. Direct Materials Budget Second Quarter Materials needed for production (pounds) Total materials requirements (pounds) Materials to be purchased (pounds) Budgeted cost of direct materials purchases 240,000 units
Magnolia, Inc., manufactures bedding sets. The budgeted production is for 22,100 comforters this year. Each comforter requires 7 yards of material. The estimated January 1 beginning inventory is 4,970 yards with the desired ending balance of 4,500 yards of material. If the material costs $6.50 per yard, determine the materials budget for the year.$fill in the blank 1
8. Central Drug Store carries a variety of health and beauty aids, including elastic ankle braces. The sales budget for ankle braces for the first six months of the year is as follows. The owner of Central Drug believes that ending inventories should be sufficient to cover 20 percent of the next month’s projected sales. On January 1, there were 84 ankle braces in inventory. If ankle braces are priced at cost plus 60 percent Calculate the merchandise purchases budget in units of ankle braces for March.
Jackson Inc. produces leather handbags. The production budget for the next four months is: July 5,300 units, August 7,700 units, September 8,400 units, October 8,100 units. Each handbag requires 0.5 square meters of leather. Jackson Inc.’s leather inventory policy is 30% of next month’s production needs. On July 1 leather inventory was expected to be 795 square meters. What will leather purchases be in July? Multiple Choice 2,760 square meters 4,035 square meters 3,010 square meters 3,160 square meters
Fisher-Price manufactures two products, Bassinet and Swing, which use raw materials, pins and clips. One bassinet uses 4 units of pins and 3 units of clips. One swing uses 2 units of pins and 6 units of clips. One pin is expected to cost $7 and one clip is expected to cost $5. Sales and finished goods inventory budget for the year 2020 are as follows: Bassinets Swings Budgeted sales 5,000 units Budgeted sales 7.000 units Opening inventory 1,000 units Opening inventory 2,000 units Closing inventory 600 units Closing inventory 800 units Selling price $400 Selling price $300 Raw material inventory budget for the year 2020 are as follows: Pins Clips Opening inventory 2,400 units Opening inventory 3,300 units Closing inventory 500 units Closing inventory 600 units The warehouse and stores managers have suggested that a provision should be made for damages and deterioration of items held in store, as…
Soft and Silky, Inc., manufactures bedding sets. The budgeted production is for 53,000 comforters in the coming year. Each comforter requires 6 yards of material. The estimated January 1 beginning inventory is 31,000 yards. The desired ending balance is 30,000 yards of material. If the material costs $1.50 per yard, what is the materials budget for the coming year? a.$385,500 b.$478,500 c.$475,500 d.$477,000
Eliot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle. The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part. Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 16,800 nozzles in stock, although the latest estimate for August production indicates a requirement for only 15,000 nozzles. Total uses of the nozzle are expected to be 14,700 in September and 15,540 in October. Nozzles are purchased at a wholesale price of $8. Eliot pays 25 percent of the purchase price in cash in the month when the parts are delivered. The remaining 75 percent is paid in the following month. Eliot purchased 21,000 parts in July. Required: a. Estimate purchases of the nozzle (in units) for August and September. b. Estimate the cash disbursements for nozzles in August and September.
Beckett Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows: (Click the icon to view additional information.) Inventory at the start of the year was 850 planters. The desired inventory of planters at the end of each month should be equal to 25% of the following month's budgeted sales. Each planter requires four pounds of polypropylene (a type of plastic). The company wants to have 20% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.10 per pound. Read the requirements. Data table For the Months of January through March January February March Quarter Number of planters to be sold Units to be produced 3,425 3,400 3,525 10,350 January. 3,400 4 Multiply by: Quantity of direct materials needed per unit Quantity needed for production February 3,500…
Jadara Company produces t- shirts from fabric. It has an inventory of 37,500 units of t- shirts on hand at December 31 and has estimated an inventory of 42,000 units of t-shirts at the end of the succeeding quarter. The company has prepared a sales budget of 275,000 units of t-shirts for a 3-month period. The company has an inventory of 85,750 yards at December 31 and has a target ending inventory of 57,000 yards at the end of the succeeding quarter. One unit of t- shirt needs 2.5 yards. How many yards of direct materials (fabric) should Jadara purchase during the 3 months ending March 31?
Green Company expects to sell 1,000 wreaths in December 2018, but wants to plan for 175 more and 200 less than expected. The wreaths sell for $11.00 each and have variable costs of $7.00 each. Fixed costs are expected to be $1,400 for the month. Prepare a flexible budget for 800, 1,000, and 1,175 wreaths. Green Company Flexible Budget For the Month Ended December 31, 2018 Budget Amounts per Unit Units 800 1,000 1,175
E. Evans Company produces stuffed toy animals; one of these is Randy the Reindeer. Each reindeer takes 0.10 yard of fabric and three ounces of polyfiberfill. Fabric costs $3.50 per yard, and polyfiberfill is $0.05 per ounce. Ivans has budgeted production of stuffed reindeer for the next four months as follows: October 40,000; November 80,000; December 50,000; January 60,000. Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 15 percent of the following month’s production needs and sufficient polyfiberfill be in inventory to satisfy 30 percent of the following month’s production needs. Inventory of fabric and polyfiberfill at the beginning of October equals exactly the amount needed to satisfy the inventory policy.Each reindeer produced requires (on average) 0.2 direct labor hour. The average cost of direct labor is $10.50 per hour. 1.Compute for the budgeted direct labor cost for October. 2.Compute for the budgeted direct labor cost for…