Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 6, Problem 6.23E
Direct material budget. Dawson Co. produces wine. The company expects to produce 2,535,000 two-liter bottles of Chablis in 2018. Dawson purchases empty glass bottles from an outside vendor. Its target ending inventory of such bottles is 77,000; its beginning inventory is 54,000. For simplicity, ignore breakage. Compute the number of bottles to be purchased in 2018.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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 1,200 square meters. What will leather purchases be in August?
Multiple Choice
3,955 square meters
7,910 square meters
7,835 square meters
3,805 square meters
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
Required information
[The following information applies to the questions displayed below.]
Shadee Corporation expects to sell 540 sun shades in May and 310 in June. Each shade sells for $156. Shadee's
beginning and ending finished goods inventories for May are 65 and 55 shades, respectively. Ending finished goods
inventory for June will be 50 shades.
Required:
1. Prepare Shadee's sales budget for May and June.
2. Prepare Shadee's production budget for May and June.
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required 1equired 2
Prepare Shadee's sales budget for May and June.
May
June
Budgeted Total Sales
$
54,210 x $
48,360
Required 1
Required 2 >
Chapter 6 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 6 - What are the four elements of the budgeting cycle?Ch. 6 - Define master budget.Ch. 6 - Strategy, plans, and budgets are unrelated to ore...Ch. 6 - Budgeted performance is a better criterion than...Ch. 6 - Production managers and marketing managers are...Ch. 6 - Budgets meet the cost-benefit test. They force...Ch. 6 - Define rolling budget. Give an example.Ch. 6 - Outline the steps in preparing an operating...Ch. 6 - The sales forecast is the cornerstone for...Ch. 6 - Prob. 6.10Q
Ch. 6 - Define Kaizen budgeting.Ch. 6 - Prob. 6.12QCh. 6 - Explain how the choice of the type of...Ch. 6 - What are some additional considerations that arise...Ch. 6 - Prob. 6.15QCh. 6 - Master budget. Which of the following statements...Ch. 6 - Operating and financial budgets. Which of the...Ch. 6 - Production budget. Superior Industries sales...Ch. 6 - Responsibility centers. Elmhurst Corporation is...Ch. 6 - Cash budget. Mary Jacobs, the controller of the...Ch. 6 - Sales budget, service setting. In 2017 Hart Sons,...Ch. 6 - Sales and production budget. The Coby Company...Ch. 6 - Direct material budget. Dawson Co. produces wine....Ch. 6 - Material purchases budget. The McGrath Company has...Ch. 6 - Revenues, production, and purchases budgets. The...Ch. 6 - Revenues and production budget. Saphire, Inc.,...Ch. 6 - Budgeting; direct material usage, manufacturing...Ch. 6 - Budgeting, service company. Ever Clean Company...Ch. 6 - Budgets for production and direct manufacturing...Ch. 6 - Activity-based budgeting. The Jerico store of...Ch. 6 - Kaizen approach to activity-based budgeting...Ch. 6 - Responsibility and controllability. Consider each...Ch. 6 - Responsibility, controllability, and stretch...Ch. 6 - Cash flow analysis, sensitivity analysis....Ch. 6 - Budget schedules for a manufacturer. Hale...Ch. 6 - Budgeted costs, Kaizen improvements environmental...Ch. 6 - Revenue and production budgets. (CPA, adapted) The...Ch. 6 - Budgeted income statement. (CMA, adapted) Smart...Ch. 6 - Prob. 6.39PCh. 6 - Comprehensive problem with ABC costing. Animal...Ch. 6 - Cash budget (continuation of 6-40). Refer to the...Ch. 6 - Comprehensive operating budget. Skulas, Inc.,...Ch. 6 - Cash budgeting, budgeted balance sheet....Ch. 6 - Comprehensive problem; ABC manufacturing, two...Ch. 6 - Cash budget. (Continuation of 6-44) (Appendix)...Ch. 6 - Budgeting and ethics. Jayzee Company manufactures...Ch. 6 - Kaizen budgeting for carbon emissions. Apex...Ch. 6 - Comprehensive budgeting problem; activity-based...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Shadee Corporation expects to sell 580 sun shades in May and 350 in June. Each shade sells for $143, Shadee's beginning and ending finished goods Inventories for May are 75 and 50 shades, respectively. Ending finished goods Inventory for June will be 70 shades. Required: 1. Prepare Shadee's sales budget for May and June. 2. Prepare Shadee's production budget for May and June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare Shadee's sales budget for May and June. Budgeted Total Sales May Junearrow_forward! Required information The following information applies to the questions displayed below.) Shadee Corporation expects to sell 540 sun shades in May and 310 in June. Each shade sells for $156. Shadee's beginning and ending finished goods inventories for May are 65 and 55 shades, respectively. Ending finished goods inventory for June will be 50 shades. Required: 1. Prepare Shadee's sales budget for May and June. 2. Prepare Shadee's production budget for May and June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare Shadee's sales budget for May and June. Budgeted Total Sales May June Required 1 Required 2 >arrow_forwardThunder Creek Company expects sales of 18,000 units in January 2018, 24,000 units in February, 30,000 units in March, 34,000 in April, and 36,000 in May. The sales price is $34 per unit. Prepare a sales budget. Thunder Creek wants to finish each month with 20% of next month's sales in units. Prepare a production budget. (When entering answers in the production budget, use the sales budget for your cell references. Enter all values as positive--without a minus sign--in row 18.) Hint: Beginning inventory for the period is equal to the ending inventory of the previous period.arrow_forward
- Kimball Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $24. Kimball projects sales for April will be 2,500 packages, with sales increasing by 200 packages per month for May, June, and July. On April 1, Kimball has 100 packages on hand but desires to maintain an ending inventory of 20% of the next month's sales. Prepare a sales budget and a production budget for Kimball for April, May, and June. Begin by preparing a sales budget for April, May, and June. Kimball Company Sales Budget April, May, and June April May Budgeted packages to be sold Sales price per package Total sales 697 2,500 2,700 24 $ 60,000 $ 64,800 24 $ $ June 2,900 Total 8,100 24 24 $ 69,600 $ 194,400arrow_forwardThe Cole Company expects sales in 2018 of 204,000 units of serving trays. Cole's beginning inventory for 2018 is 16,000 trays, and its target ending inventory is 25,000 trays. Compute the number of trays budgeted for production in 2018. Select the labels and enter the amounts to calculate the units of finished goods (trays) to be produced. Units of finished goods to be producedarrow_forwardi need the answer quicklyarrow_forward
- Kessler Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $25. Kessler projects sales for April will be 4,500 packages, with sales increasing by 300 packages per month for May, June, and July. On April 1, Kessler has 225 packages on hand but desires to maintain an ending inventory of 10% of the next month's sales. Prepare a sales budget and a production budget for Kessler for April, May, and June. Begin by preparing a sales budget for April, May, and June. Kessler Company Sales Budget April, May, and June April May Budgeted packages to be sold Sales price per package Total sales $ Budgeted packages to be sold 4,500 Now prepare a production budget for April, May, and June. 4,800 25 $ 112,500 $ 120,000 Plus: Total packages needed Less: Packages in beginning inventory Budgeted packages to be produced Desired packages in ending inventory 25 $ Kessler Company Production Budget April, May, and June April June 5,100 25 $ $ $ 127,500 May Total…arrow_forwardShadee Corporation expects to sell 590 sun shades in May and 360 in June. Each shade sells for $136. Shadee’s beginning and ending finished goods inventories for May are 80 and 45 shades, respectively. Ending finished goods inventory for June will be 50 shades. Required: Prepare Shadee’s sales budget for May and June. Prepare Shadee’s production budget for May and June.arrow_forwardLugo Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $24. Lugo projects sales for April will be 2,500 packages, with sales increasing by 200 packages per month for May, June, and July.. On April 1, Lugo has 400 packages on hand but desires to maintain an ending inventory of 20% of the next month's sales. Prepare a sales budget and a production budget for Lugo for April, May, and June. Begin by preparing a sales budget for April, May, and June. Lugo Company Sales Budget April, May, and June April May June Total 2.500 2.700 2,900 8.100 Budgeted packages to be sold $. 24 $ 24 || $ 24 $ 24 Sales price per package 24 60.000 S 64,800 $ 69,600 $ 194,400 Total sales Now prepare a production budget for April, May, and June. Lugo Company Production Budget April, May, and June April May June Total 2500 2700 2900 8100 Budgeted packages to be sold Plus: Desired packages in ending inventory Total packages needed Less: Packages in beginning inventory…arrow_forward
- Exquisite Bedding Ltd. The company uses a rolling budgetary control system and is in the process of preparing the budget for the four months’ period from September to December 2020. During a preliminary review, you established that the company intends to sell each bed produced for $219 to Ultimate Care Ltd. in addition to individual customers on the same credit terms. Exquisite Bedding Ltd secured a cash loan of $120,000 (from Barclays Bank) that was secured on the land and buildings at an interest rate of 7 ½ % and this is due to be received in November 2020. Also, machinery costing $112,000 will be received in November and paid for in December 2020. You have been provided with the following budgeted balance sheet information for Exquisite Bedding Ltd as at September 1, 2020 well as estimates and other operating data (PLEASE SEE BALANCE SHEET ATTACHED AS PHOTO) Other information: Stock valuation was done using FIFO method and the closing stock of raw materials is for 100 units and…arrow_forwardExquisite Bedding Ltd. The company uses a rolling budgetary control system and is in the process of preparing the budget for the four months’ period from September to December 2020. During a preliminary review, you established that the company intends to sell each bed produced for $219 to Ultimate Care Ltd. in addition to individual customers on the same credit terms. Exquisite Bedding Ltd secured a cash loan of $120,000 (from Barclays Bank) that was secured on the land and buildings at an interest rate of 7 ½ % and this is due to be received in November 2020. Also, machinery costing $112,000 will be received in November and paid for in December 2020. You have been provided with the following budgeted balance sheet information for Exquisite Bedding Ltd as at September 1, 2020 well as estimates and other operating data (PLEASE SEE BALANCE SHEET ATTACHED AS PHOTO) Other information: Stock valuation was done using FIFO method and the closing stock of raw materials is for 100 units and…arrow_forwardExquisite Bedding Ltd. The company uses a rolling budgetary control system and is in the process of preparing the budget for the four months’ period from September to December 2020. During a preliminary review, you established that the company intends to sell each bed produced for $219 to Ultimate Care Ltd. in addition to individual customers on the same credit terms. Exquisite Bedding Ltd secured a cash loan of $120,000 (from Barclays Bank) that was secured on the land and buildings at an interest rate of 7 ½ % and this is due to be received in November 2020. Also, machinery costing $112,000 will be received in November and paid for in December 2020. You have been provided with the following budgeted balance sheet information for Exquisite Bedding Ltd as at September 1, 2020 well as estimates and other operating data (PLEASE SEE BALANCE SHEET ATTACHED AS PHOTO) Other information: Stock valuation was done using FIFO method and the closing stock of raw materials is for 100 units and…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
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
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Responsibility Accounting| Responsibility Centers and Segments| US CMA Part 1| US CMA course; Master Budget and Responsibility Accounting-Intro to Managerial Accounting- Su. 2013-Prof. Gershberg; Author: Mera Skill; Rutgers Accounting Web;https://www.youtube.com/watch?v=SYQ4u1BP24g;License: Standard YouTube License, CC-BY