Concept explainers
Videos
Concept Introduction:
Budget: It is forward looking exercise which the company takes by preparing estimated revenues, costs and resources needed by company for a period. It can be prepared for single period or for multiple periods
Production Budget: The estimated production of finished goods for each period is calculated by preparing the production budget. The starting point is sales budget and requirement of opening and closing inventory is determined. The formula to calculate the production quantity is given below
Purchase Budget : The estimated purchase of raw material required to produce finished goods is calculated while preparing the purchase budget. The formula to calculate budgeted purchase of raw material is given below
REQUIREMENT (a)
To calculate:
The number of units to be produced in August
Concept Introduction:
Budget: It is forward looking exercise which the company takes by preparing estimated revenues, costs and resources needed by company for a period. It can be prepared for single period or for multiple periods
Production Budget: The estimated production of finished goods for each period is calculated by preparing the production budget. The starting point is sales budget and requirement of opening and closing inventory is determined. The formula to calculate the production quantity is given below
Purchase Budget : The estimated purchase of raw material required to produce finished goods is calculated while preparing the purchase budget. The formula to calculate budgeted purchase of raw material is given below
REQUIREMENT (b)
To calculate:
The quantity of raw material in pounds to be purchased in August
Want to see the full answer?
Check out a sample textbook solution
Chapter 14 Solutions
Principles of Financial Accounting (Elon University)
- Wilson Corporation acquires Greatbatch Company for $80 million cash in a merger. The balance sheets of both companies at the date of acquisition are as follows: Balance Sheet (in millions) Wilson Greatbatch Current assets $96 $8 Property and equipment 800 144 Intangibles 32 4.8 Total assets $928 $156.8 Current liabilities $40 $3.2 Long-term debt 640 104 Capital stock 80 19.2 Retained earnings 192 24 Accumulated other comprehensive income (loss) (24) 6.4 Total liabilities and equity $928 $156.8 Greatbatch's property and equipment is overvalued by $48 million, its reported intangibles are undervalued by $32 million, and it has unreported intangibles, in the form of customer databases and marketing agreements, valued at $11.2 million. Required Prepare Wilson's balance sheet immediately following the merger. Use a negative sign with your answer for AOCI if the balance is a loss.arrow_forwardNot use ai solution given correct answerarrow_forwardGeneral Accounting questionarrow_forward
- Provide answer general Accountingarrow_forwardCompare and contrast experiences you have had with your own and other people’s monochromic time orientation and polychronic time orientation and how you can account for any differences in time orientation in your workplace communications in the future.arrow_forwardI need this question answer general Accountingarrow_forward
- Financial accounting questionarrow_forwardAns?? Financial accounting questionarrow_forwardYour career is expanding with an opportunity to support your company's growth in a non-U.S. country. Choose a country that you believe is a viable expansion option. Support your choice for this country by learning about the country's political, economic, and legal system. Share this information with your classmates by summarizing how these areas would contribute to the successful expansion project.arrow_forward
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education