Thunder Creek Company uses 2 pounds of direct materials for each unit it produces, at a cost of $4.00 per pound. The company begins the year with 9,500 pounds of material in Raw MaterialsInventory. Management desires an ending inventory of 25% of next month's materials requirementsPrepare a Direct Materials Budget. (When entering answers in the direct materials budget, use the production budget for your cell references. Enter all values as positive--without a minus sign--in row 31.)2018JanFebQ1 TotalAprilBudget #3: Direct Materials BudgetBudgeted units to be producedMar30,80025,20019,2002.00Direct materials (pounds) per unit2.00Direct materials needed for production50,40038,40012,6002.0061,6008,600Plus: Desired direct materials in ending inventory (pounds)15,400Total direct materials needed51,00065,80070,200Less: Direct materials in beginning inventory (pounds)9,50012,60015,400Budgeted purchase of direct materials41,50053,20054,800Direct material cost per pound4.00166,000 $4.00212,800 $4.00219,200 $Budgeted cost of direct materials purchases$75,2002.00150,4008,600159,2009,500149,5004.00598,0002.00

Budgeting - Budgeting is the process of estimating future operations based on past performance. %…

Thunder Creek Company uses 2 pounds of direct materials for each unit it produces, at a cost of $4.00 per pound. The company begins the year with 9,500 pounds of material in Raw Materials Inventory. Management desires an ending inventory of 25% of next month's materials requirements Prepare a Direct Materials Budget. (When entering answers in the direct materials budget, use the production budget for your cell references. Enter all values as positive--without a minus sign-in row 31.) 2018 Jan Feb Q1 Total Budget # 3: Direct Materials Budget Budgeted units to be produced April Mar 30,800 19,200 25,200 Direct materials (pounds) per unit 2.00 2.00 Direct materials needed for production 2.00 61,600 38,400 50,400 12,600 Plus: Desired direct materials in ending inventory (pounds) Total direct materials needed 15,400 8,600 51,000 65,800 70,200 Less: Direct materials in beginning inventory (pounds) 12,600 Budgeted purchase of direct materials 9,500 41,500 53,200 Direct material cost per pound 15,400 54,800 4.00 219,200 $ Budgeted cost of direct materials purchases 4.00 166,000 $ 4.00 212,800 $ $ 75,200 2.00 150,400 8,600 159,200 9,500 149,500 4.00 598,000 2.00

Thunder Creek Company uses 2 pounds of direct materials for each unit it produces, at a cost of $4.00 per pound. The company begins the year with 9,500 pounds of material in Raw Materials Inventory. Management desires an ending inventory of 25% of next month's materials requirements Prepare a Direct Materials Budget. (When entering answers in the direct materials budget, use the production budget for your cell references. Enter all values as positive--without a minus sign-in row 31.) 2018 Jan Feb Q1 Total Budget # 3: Direct Materials Budget Budgeted units to be produced April Mar 30,800 19,200 25,200 Direct materials (pounds) per unit 2.00 2.00 Direct materials needed for production 2.00 61,600 38,400 50,400 12,600 Plus: Desired direct materials in ending inventory (pounds) Total direct materials needed 15,400 8,600 51,000 65,800 70,200 Less: Direct materials in beginning inventory (pounds) 12,600 Budgeted purchase of direct materials 9,500 41,500 53,200 Direct material cost per pound 15,400 54,800 4.00 219,200 $ Budgeted cost of direct materials purchases 4.00 166,000 $ 4.00 212,800 $ $ 75,200 2.00 150,400 8,600 159,200 9,500 149,500 4.00 598,000 2.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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