Question

82. Christina Ruiz provides you with the following information regarding her in ment income. Interest received: Cavendar State Bank checking account S 43 Federal Employee's Credit Union 881 City of Singapore bonds 990 New Jersey Urban Development bonds 382 Dividends received: Ford Motor Company S120 New Core preferred stock 220 Northwestern Publishing Inc. 400 In addition, Northwestern Publishing Inc, issued a 5 percent stock dividend on August 15. Christina received 25 dividend shares, which were trading at $23 per share! on August 15. Prepare Christina's Schedule B. Her Social Security number is 568-33. 2541. Forms and instructions can be downloaded from the IRS website (www.jrs.com

(solve the equation 82) using the Form 1040 to plot answers

Answer 1

Ruiz Co. provides the following sales forecast for the next four months:

	April	May	June	July
Sales (units)	500	580	540	620

The company wants to end each month with ending finished goods inventory equal to 25% of next month's forecasted sales. Finished goods inventory on April 1 is 190 units. Assume July's budgeted production is 540 units. In addition, each finished unit requires five pounds (lbs.) 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.

RUIZ Co.
Direct Materials Budget
For April, May, and June
	April	May	June
Budgeted Production (units)
Materials requirement per unit
Materials needed for production (lbs.)
Budgeted ending inventory (lbs.)
Total materials requirements (lbs.)
Beginning Inventory (lbs.)
Materials to be purchased (lbs.)
Cost per lb.
Total budgeted direct materials cost

Raw materials requirement budget

In order to prepare raw materials requirement budget, one needs to know the production requirement. For this, first production budget has to be prepared and by using this budget, raw material requirement budget can be prepared. Raw materials requirement budget helps in planning of procurement of raw materials that would be required to produce desired number of units as per the production budget. This also helps in funds planing for working capital requirements.