Vaughn Chemicals has developed a new window cleaner that requires two ingredients, AM972 and CA38. Based on forecasted sales, Vaughn has developed the following budgeted production for the coming year. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st QuarterNext Year Forecasted production (gallons) 5,000 7,000 9,000 12,500 6,000 Each gallon of window cleaner requires 100 ounces of AM972 and 28 ounces of CA38. An ounce of AM972 costs Vaughn $0.15. An ounce of CA38 costs the company $0.25. Vaughn's inventory policy requires ending inventory equal to 20% of the next quarter's production needs. At the beginning of the year, Vaughn expects to have 80,000 ounces of AM972 and 30,000 ounces of CA38 on hand.Prepare Vaughn's AM972 purchases budget for the coming year. (Enter price per ounce to 2 decimal places, e.g. 0.35.) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual select an opening purchase budget item Budgeted productionBudgeted purchases costBeginning inventoryProduction needsStandard price per ounceBudgeted purchases (ounces)Standard ounces per gallonTotal DM required (ounces)Budgeted ending inventory enter a number of gallons enter a number of gallons enter a number of gallons enter a number of gallons enter a number of gallons select an item Standard ounces per gallonBudgeted purchases (ounces)Production needsStandard price per ounceTotal DM required (ounces)Beginning inventoryBudgeted purchases costBudgeted productionBudgeted ending inventory enter a number of ounces enter a number of ounces enter a number of ounces enter a number of ounces enter a number of ounces select a summarizing line for the first part Budgeted purchases costBudgeted productionTotal DM required (ounces)Standard price per ounceProduction needsBudgeted ending inventoryBeginning inventoryStandard ounces per gallonBudgeted purchases (ounces) enter a total number of ounces for the first part enter a total number of ounces for the first part enter a total number of ounces for the first part enter a total number of ounces for the first part enter a total number of ounces for the first part select an item Standard price per ounceBudgeted purchases (ounces)Budgeted purchases costProduction needsStandard ounces per gallonBudgeted ending inventoryTotal DM required (ounces)Budgeted productionBeginning inventory enter a number of ounces enter a number of ounces enter a number of ounces enter a number of ounces enter a number of ounces select a summarizing line for the second part Standard ounces per gallonStandard price per ounceBudgeted purchases costBeginning inventoryBudgeted ending inventoryProduction needsBudgeted productionTotal DM required (ounces)Budgeted purchases (ounces) enter a total number of ounces for the second part enter a total number of ounces for the second part enter a total number of ounces for the second part enter a total number of ounces for the second part enter a total number of ounces for the second part select an item Budgeted purchases costBeginning inventoryBudgeted purchases (ounces)Total DM required (ounces)Standard price per ounceBudgeted ending inventoryBudgeted productionStandard ounces per gallonProduction needs enter a number of ounces enter a number of ounces enter a number of ounces enter a number of ounces enter a number of ounces select a summarizing line for the third part Budgeted productionBudgeted ending inventoryTotal DM required (ounces)Beginning inventoryStandard ounces per gallonBudgeted purchases costStandard price per ounceBudgeted purchases (ounces)Production needs enter a total number of ounces for the third part enter a total number of ounces for the third part enter a total number of ounces for the third part enter a total number of ounces for the third part enter a total number of ounces for the third part select an item Standard ounces per gallonTotal DM required (ounces)Beginning inventoryBudgeted ending inventoryBudgeted purchases costStandard price per ounceBudgeted purchases (ounces)Budgeted productionProduction needs $enter a dollar amount rounded to 2 decimal places select a closing purchase budget item Budgeted ending inventoryStandard price per ounceStandard ounces per gallonTotal DM required (ounces)Budgeted productionBudgeted purchases (ounces)Beginning inventoryBudgeted purchases costProduction needs $enter a total dollar amount Vaughn Chemicals has developed a new window cleaner that requires two ingredients, AM972 and CA38. Based on forecastedsales, Vaughn has developed the following budgeted production for the coming year.1st Quarter1st Quarter2nd Quarter3rd Quarter4th QuarterNext YearForecasted production (gallons)5,0007,0009,00012,5006,000Each gallon of window cleaner requires 100 ounces of AM972 and 28 ounces of CA38. An ounce of AM972 costs Vaughn $0.15. Anounce of CA38 costs the company $0.25. Vaughn's inventory policy requires ending inventory equal to 20% of the next quarter'sproduction needs. At the beginning of the year, Vaughn expects to have 80,000 ounces of AM972 and 30,000 ounces of CA38 onhand.Prepare Vaughn's AM972 purchases budget for the coming year. (Enter price per ounce to 2 decimal places, e.g. 0.35.)1st Quarter2nd Quarter3rd Quarter>>>>> Each gallon of window cleaner requires 100 ounces of AM972 and 28 ounces of CA38. An ounce of AM972 costs Vaughn $0.15. Anounce of CA38 costs the company $0.25. Vaughn's inventory policy requires ending inventory equal to 20% of the next quarter'sproduction needs. At the beginning of the year, Vaughn expects to have 80,000 ounces of AM972 and 30,000 ounces of CA38 onhand.Prepare Vaughn's AM972 purchases budget for the coming year. (Enter price per ounce to 2 decimal places, eg. 0.35.)2nd Quarter3rd Quarter4th QuarterAnnual$$$$$%24%24%24%24%24%24%24

Formula for purchase budget : Purchase in units = Usage + Desired ending material inventory units −…

Answered: Vaughn Chemicals has developed a new…

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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Vaughn Chemicals has developed a new window cleaner that requires two ingredients, AM972 and CA38. Based on forecasted sales, Vaughn has developed the following budgeted production for the coming year.

			1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		1st Quarter Next Year
	Forecasted production (gallons)		5,000		7,000		9,000		12,500		6,000

Each gallon of window cleaner requires 100 ounces of AM972 and 28 ounces of CA38. An ounce of AM972 costs Vaughn $0.15. An ounce of CA38 costs the company $0.25. Vaughn's inventory policy requires ending inventory equal to 20% of the next quarter's production needs. At the beginning of the year, Vaughn expects to have 80,000 ounces of AM972 and 30,000 ounces of CA38 on hand.

Prepare Vaughn's AM972 purchases budget for the coming year. (Enter price per ounce to 2 decimal places, e.g. 0.35.)

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Annual
select an opening purchase budget item Budgeted productionBudgeted purchases costBeginning inventoryProduction needsStandard price per ounceBudgeted purchases (ounces)Standard ounces per gallonTotal DM required (ounces)Budgeted ending inventory	enter a number of gallons	enter a number of gallons	enter a number of gallons	enter a number of gallons	enter a number of gallons
select an item Standard ounces per gallonBudgeted purchases (ounces)Production needsStandard price per ounceTotal DM required (ounces)Beginning inventoryBudgeted purchases costBudgeted productionBudgeted ending inventory	enter a number of ounces	enter a number of ounces	enter a number of ounces	enter a number of ounces	enter a number of ounces
select a summarizing line for the first part Budgeted purchases costBudgeted productionTotal DM required (ounces)Standard price per ounceProduction needsBudgeted ending inventoryBeginning inventoryStandard ounces per gallonBudgeted purchases (ounces)	enter a total number of ounces for the first part	enter a total number of ounces for the first part	enter a total number of ounces for the first part	enter a total number of ounces for the first part	enter a total number of ounces for the first part
select an item Standard price per ounceBudgeted purchases (ounces)Budgeted purchases costProduction needsStandard ounces per gallonBudgeted ending inventoryTotal DM required (ounces)Budgeted productionBeginning inventory	enter a number of ounces	enter a number of ounces	enter a number of ounces	enter a number of ounces	enter a number of ounces
select a summarizing line for the second part Standard ounces per gallonStandard price per ounceBudgeted purchases costBeginning inventoryBudgeted ending inventoryProduction needsBudgeted productionTotal DM required (ounces)Budgeted purchases (ounces)	enter a total number of ounces for the second part	enter a total number of ounces for the second part	enter a total number of ounces for the second part	enter a total number of ounces for the second part	enter a total number of ounces for the second part
select an item Budgeted purchases costBeginning inventoryBudgeted purchases (ounces)Total DM required (ounces)Standard price per ounceBudgeted ending inventoryBudgeted productionStandard ounces per gallonProduction needs	enter a number of ounces	enter a number of ounces	enter a number of ounces	enter a number of ounces	enter a number of ounces
select a summarizing line for the third part Budgeted productionBudgeted ending inventoryTotal DM required (ounces)Beginning inventoryStandard ounces per gallonBudgeted purchases costStandard price per ounceBudgeted purchases (ounces)Production needs	enter a total number of ounces for the third part	enter a total number of ounces for the third part	enter a total number of ounces for the third part	enter a total number of ounces for the third part	enter a total number of ounces for the third part
select an item Standard ounces per gallonTotal DM required (ounces)Beginning inventoryBudgeted ending inventoryBudgeted purchases costStandard price per ounceBudgeted purchases (ounces)Budgeted productionProduction needs	$enter a dollar amount rounded to 2 decimal places
select a closing purchase budget item Budgeted ending inventoryStandard price per ounceStandard ounces per gallonTotal DM required (ounces)Budgeted productionBudgeted purchases (ounces)Beginning inventoryBudgeted purchases costProduction needs					$enter a total dollar amount

Vaughn Chemicals has developed a new window cleaner that requires two ingredients, AM972 and CA38. Based on forecasted
sales, Vaughn has developed the following budgeted production for the coming year.
1st Quarter
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Next Year
Forecasted production (gallons)
5,000
7,000
9,000
12,500
6,000
Each gallon of window cleaner requires 100 ounces of AM972 and 28 ounces of CA38. An ounce of AM972 costs Vaughn $0.15. An
ounce of CA38 costs the company $0.25. Vaughn's inventory policy requires ending inventory equal to 20% of the next quarter's
production needs. At the beginning of the year, Vaughn expects to have 80,000 ounces of AM972 and 30,000 ounces of CA38 on
hand.
Prepare Vaughn's AM972 purchases budget for the coming year. (Enter price per ounce to 2 decimal places, e.g. 0.35.)
1st Quarter
2nd Quarter
3rd Quarter
>
>
>
>
>

Each gallon of window cleaner requires 100 ounces of AM972 and 28 ounces of CA38. An ounce of AM972 costs Vaughn $0.15. An
ounce of CA38 costs the company $0.25. Vaughn's inventory policy requires ending inventory equal to 20% of the next quarter's
production needs. At the beginning of the year, Vaughn expects to have 80,000 ounces of AM972 and 30,000 ounces of CA38 on
hand.
Prepare Vaughn's AM972 purchases budget for the coming year. (Enter price per ounce to 2 decimal places, eg. 0.35.)
2nd Quarter
3rd Quarter
4th Quarter
Annual
$
$
$
$
$
%24
%24
%24
%24
%24
%24
%24

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