Vista Electronics, Incorporated, manufactures two different types of coils used in electric motors. In the fall of the current year, Erica Becker, the controller, compiled the following data. • Sales forecast for 20x0 (all units to be shipped in 20x0): Product Light coil Heavy coil Price $ 280 380 • Raw-material prices and inventory levels: Expected Inventories, January 1, 20x0 36,000 Pound 33,000 Pound 5,800 units Raw Material Sheet metal Copper wire Platform • Use of raw material: Units 58,000 38,000 Amount Used per Unit Raw Material Sheet metal Copper wire Platform • Direct-labor requirements and rates: Product Light coil Heavy coil Light Coil 4 Pound 2 Pound Desired Inventories, December 31, 20x0 40,000 Pound 36,000 Pound 6,800 units Hours per Unit 3 5 Heavy Coil 5 Pound 3 Pound 2 unit Rate per Hour $15 20 Anticipated Purchase Price $15 8 4
Vista Electronics, Incorporated, manufactures two different types of coils used in electric motors. In the fall of the current year, Erica Becker, the controller, compiled the following data. • Sales forecast for 20x0 (all units to be shipped in 20x0): Product Light coil Heavy coil Price $ 280 380 • Raw-material prices and inventory levels: Expected Inventories, January 1, 20x0 36,000 Pound 33,000 Pound 5,800 units Raw Material Sheet metal Copper wire Platform • Use of raw material: Units 58,000 38,000 Amount Used per Unit Raw Material Sheet metal Copper wire Platform • Direct-labor requirements and rates: Product Light coil Heavy coil Light Coil 4 Pound 2 Pound Desired Inventories, December 31, 20x0 40,000 Pound 36,000 Pound 6,800 units Hours per Unit 3 5 Heavy Coil 5 Pound 3 Pound 2 unit Rate per Hour $15 20 Anticipated Purchase Price $15 8 4
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 19P
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Prepare the raw material purchases budget (in dollars) for 20x0.
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