Homework Answers
| Estimated Production units | ||||||
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Quarter 1, next year | Total for 2021 | |
| Units sold | 260,000 | 240,000 | 280,000 | 300,000 | 280,000 | 1,080,000 |
| Add: ending finished goods inventory | 135,000 | 135,000 | 135,000 | 135,000 | 135,000 | 135,000 |
| Units available for sale | 395,000 | 375,000 | 415,000 | 435,000 | 415,000 | 1,215,000 |
| Less: Beginning finished goods inventory | 100,000 | 135,000 | 135,000 | 135,000 | 135,000 | 100,000 |
| Units Produced | 295,000 | 240,000 | 280,000 | 300,000 | 280,000 | 1,115,000 |
| Direct material purchases budget - Syrup | ||||||
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Quarter 1, next year | Total for 2021 | |
| Units Produced | 295,000 | 240,000 | 280,000 | 300,000 | 280,000 | 1,115,000 |
| Multiply: Quality required per finished unit | 2 | 2 | 2 | 2 | 2 | 2 |
| Production needs | 590,000 | 480,000 | 560,000 | 600,000 | 560,000 | 2,230,000 |
| Add: ending raw material (next quarter's production needs * 75%) | 360,000 | 420,000 | 450,000 | 420,000 | 420,000 | |
| Raw material Available for use | 950,000 | 900,000 | 1,010,000 | 1,020,000 | 2,650,000 | |
| Less: Beginning raw material | 600,000 | 360,000 | 420,000 | 450,000 | 600,000 | |
| Purchase of material | 350,000 | 540,000 | 590,000 | 570,000 | 2,050,000 | |
| Multiply by: Cost per raw material quantity | $ 1.20 | $ 1.20 | $ 1.20 | $ 1.20 | $ 1.20 | |
| Cost of material purchased - Syrup | $ 420,000 | $ 648,000 | $ 708,000 | $ 684,000 | $ 2,460,000 | |
| Direct material purchases budget - Containers | ||||||
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Quarter 1, next year | Total for 2021 | |
| Units Produced | 295,000 | 240,000 | 280,000 | 300,000 | 280,000 | 1,115,000 |
| Multiply: Quality required per finished unit | 1 | 1 | 1 | 1 | 1 | 1 |
| Production needs | 295,000 | 240,000 | 280,000 | 300,000 | 280,000 | 1,115,000 |
| Add: ending raw material (next quarter's production needs * 50%) | 120,000 | 140,000 | 150,000 | 140,000 | 140,000 | |
| Raw material Available for use | 415,000 | 380,000 | 430,000 | 440,000 | 1,255,000 | |
| Less: Beginning raw material (current quarter's production needs * 50%) | 147,500 | 120,000 | 140,000 | 150,000 | 147,500 | |
| Purchase of material | 267,500 | 260,000 | 290,000 | 290,000 | 1,107,500 | |
| Multiply by: Cost per raw material quantity | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | |
| Cost of material purchased - Containers | $ 10,700 | $ 10,400 | $ 11,600 | $ 11,600 | $ 44,300 | |
| Direct material purchases budget - Packaging | ||||||
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Quarter 1, next year | Total for 2021 | |
| Units Produced | 295,000 | 240,000 | 280,000 | 300,000 | 280,000 | 1,115,000 |
| Multiply: Quality required per finished unit | 1 | 1 | 1 | 1 | 1 | 1 |
| Production needs | 295,000 | 240,000 | 280,000 | 300,000 | 280,000 | 1,115,000 |
| Add: ending raw material (next quarter's production needs * 100%) | 240,000 | 280,000 | 300,000 |
Know the answer?
Add Answer to:
|
Question:
Materials
e) Overhead budget (4 marks) f) Selling and administrative expenses budget (4 marks) Fizzy Pop bottles a lemon flavoured soft drink. All inventory is in direct materials and finished goods at the end of each quarter. There is no work-in-process inventory. Fizzy Pop uses cases as the unit of analysis in its budgeting. Each case contains 24 bottles. The business is preparing to build its master budget for the next financial year ending 31 December 2021. The master...
Question Material
g) Ending finished goods inventory budget (3 marks) h) Cost of goods sold budget (4 marks) Fizzy Pop bottles a lemon flavoured soft drink. All inventory is in direct materials and finished goods at the end of each quarter. There is no work-in-process inventory. Fizzy Pop uses cases as the unit of analysis in its budgeting. Each case contains 24 bottles. The business is preparing to build its master budget for the next financial year ending 31 December...
Question 1 (40 marks) Four grams of copper are need for each water bottle. The cost of copper is $2 per gram. Budgeted production of water bottles is given below by quarters for Year 2 and for the first quarter of Year 3: Year 2 First Second Third Fourth Budgeted production in bottles 120,000 160,000 260,000 180,000 Year 3 First 180,000 Copper is a usual ingredient and it is necessary to carry large inventories as a safety against stock-outs. For...
EXERCISE 8-3 Direct Materials Budget L08-4Q Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: First 60,000 Year 2 Second Third 90,000 150,000 Fourth 100,000 Year 3 First 70,000 Budgeted production, in bottles...
Exercise 9-3 Direct Materials Purchases Budget (LO2] Micro Products Inc. has developed a very powerful electronic calculator. Each calculator requires three small chips that cost $3 each and are purchased from an overseas supplier. Micro Products has prepared a production budget for the calculator by quarters for year 2 and for the first quarter of year 3, as shown below: Year 2 Second Third 186,090 166,000 First 76,099 Budgeted production, in calculators Year 3 First 96,000 Fourth 116,000 The chip...
Exercise 8-3 Direct Materials Budget (LO8-4] Two grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Budgeted production, in bottles First Second Third Yourth 74,000 104,000 164,000 116,000 Pirst 84,000 Musk oil has become...
Exercise 8-3 Direct Materials Budget [LO8-4) 3 Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $180 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Stoped Budgeted production, in bottles First 66,000 Second 96,000 Third 156,060 Fourth 106,000 Year First 76,eee Musk...
Exercise 8-3 Direct Materials Budget [LO8-4] 16.66 points Four grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.80 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Year 2 Second Third 124,000 184,000 First 94,000 eBook Year 3 First 104,000 Budgeted production, in...
Prepare the sales, production, and direct material budgets by quarters for 2020. American Company is preparing its master budget for 2020. Relevant data pertaining to its sales, production, direct materials budgets are as follows: Sales: Sales for the year are expected to total 1,200,000 units Quarterly sales are 20%, 25%, 30%, and 25% respectively. The sales price is expected to be $ 50 per units for the first three quarters and $55 per unit beginning in the fourth quarter. Sales...