| April | May | June | |
| Buckets to be produced | 21,000 | 22,000 | 24,000 |
| Pounds of plastic needed for each bucket | 1/2 | 1/2 | 1/2 |
| Total pounds of plastic needed for production | 10,500 | 11,000 | 12,000 |
| Add: Eding inventory, pounds of plastic desired (12,000 x 25%) | 3,000 | ||
| Less: Beginning inventory, pounds of plastic (11,000 x 25%) | 2,750 | ||
| Pounds of plastic needed to purchase | 11,250 | ||
| Cost per pound | $2.20 | ||
| The estimated cost of purchases for May | $24,750 | ||
Abu Dhabi, Inc wshiIncmakes and sells buckets. Each bucket uses 1/2 pound of plastic. Budgeted production...
Ending inventory, pounds of plastic desired Beginning inventory, pounds of plastic Total pounds of plastic needed for production Buckets to be produced during May Pounds of plastic needed to purchase Cost per pound Pounds of plastic needed for each bucket Estimated cost of purchases for May Smoke, Inc. makes and sells buckets. Each bucket uses 1/2 pound of plastic. Budgeted production of buckets in units for the next three months is as follows: April May June Budgeted production 21,000 22,000...
cost of plastic is $2.20 per pound
Help System Announcements CALCULATOR PRINTER VERSION Brief Exercise 161 Smoke, Inc. makes and sells buckets. Each bucket uses 1/2 pound of plastic. Budgeted production of buckets in units for the next three months is as follow April May June Budgeted production 21,000 22,000 24,000 The company wants to maintain monthly ending inventories of plastic equal to 25% of the following month's budgeted production needs. The cost of plastic pound. Prepare a direct materins...
Hanover Inc. sells buckets for $15 each. Budgeted unit sales for 4 months of 2014 are: March 26,000 buckets April 28,000 buckets May 22,000 buckets June 25,000 buckets Hanover desires to have buckets on hand at the end of each month equal to 16 percent of the following month's budgeted unit sales. Each bucket requires 3.9 pounds of plastic. At the end of each month, Hanover desires to have 12 percent of production material needs for the next month on...
Springer, Inc. produces rulers from plastic resin. On March 1, there are 5,000 completed rulers and 5,200 kilograms of resin on hand. Flyer has estimated production and sales of rulers in units for the next 4 months as: March April May June Estimated production 26,000 22,000 30,000 32,000 Estimated sales 25,000 21,000 33,000 24,000 Each ruler requires 0.25 kilograms of resin. The cost of resin is $4.40 per kilogram. Flyer wants to have 20% of the next month’s material requirements...
Orr Company makes and sells a single product. The company is in the process of preparing a direct materials purchases budget and has provided the following information: 1. It takes three yards of direct materials to produce one unit of this product. 2. Direct materials cost $1.20 per yard to purchase. 3. 15,600 units are budgeted to be produced in May. 4. The budgeted direct materials inventory balance at June 30 is $12,870. 5. Orr Company has budgeted the total...
Legalos Company makes and sells a single product. It takes seven pounds of direct materials to produce one unit of this product. Budgeted production for the next three months is given below: Budgeted Units to be Produced February 18,500 units March 19,200 units April 14,300 units The company wants to maintain monthly ending inventories of direct materials that are equal to 54% of the following month's production needs. The cost of direct materials is $1.50 per pound. Calculate the total...
Rucker Company manufactures drinking glasses. One unit is a
package of eight classes, which sells for $14. Rucker projects
sales for April will be 1,500 pages with sales increasing by 50
packages per month for May, June, and July. On April 1, Rucker has
25 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 Rucker for April, May, and June.
Rucker Company manufactures...
Ch 600 550 on April 1 is 156 units. Assume July's budgeted production is 550 units. In addition, each Exercise 7-4 Manufacturing: Direct materials budget LO P1 whole dollar Total to be The company wants to end each month with ending finished goods inventory equal to 30% of next month's forec sales. Finished goods inventory on April 1 is 156 units. Assume July's budgeted production is 550 units. In additio finished unit requires four pounds (lbs.) of raw materials and...
oblem 4 he budget components for Park Company for the quarter ended June 30 appear below. Park sells rash cans for $12 each. Budgeted sales and production for the next three months are: Sales 20,000 units 50,000 units 30,000 units Production 26,000 units 46,000 units 29,000 units April May June Park desires to have trash cans on hand at the end of each month equal to 20 percent of the following month's budgeted sales in units. On March 31, Park...
Zira Co. reports the following production budget for the next four months. Production (units) April 455 May 570 June 560 July 540 Each finished unit requires five pounds of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month's production needs. Beginning raw materials inventory for April was 663 pounds. Assume direct materials cost $4 per pound. Prepare a direct materials budget for April, May, and June. ZIRA CO. Direct...