Production Unit = 30000+11000-9000 = 32000
Direct material purchase = Units needs for production +Desired ending inventory-Beginning inventory
= (32000*5)+66000-56000
Direct material purchase = 170000 Gallons
03. [60% of test) The Howell Company has prepared a sales budget of 30,000 finished units...
The Howell company has prepared a sale budget of
49,000 finished units for a 3 months period. The company has an
inventory of 11,000 units of finished goods in band at December 31
and has a target finished goods inventory of 13,000 units at the
end of the succeeding quarter.
It takes 3 gallons of direct materials to make one
unit of finished product. The company has inventory of 64,000
gallons of direct materials at December 31 and has a...
The Alderman Company has prepared a sales budget of 48,000 finished units for a 3-month period. The company has an inventory of 14,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 16,000 units at the end of the succeeding quarter. It takes 2 gallons of direct materials to make one unit of finished product. The company has inventory of 68,000 gallons of direct materials at December 31 and has a target...
The Rouse Company has prepared a sales budget of 45,000 finished units for a 3-month period. The company has an inventory of 11,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 14,000 units at the end of the succeeding quarter It takes 4 gallons of direct materials to make one unit of finished product. The company has inventory of 61,000 gallons of direct materials at December 31 and has a target...
E6-24 (similar to) Question Help The McKnight Company has prepared a sales budget of 41,000 finished units for a 3-month period. The company has an inventory of 16,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 18,000 units at the end of the succeeding quarter. It takes 2 gallons of direct materials to make one unit of finished product. The company has inventory of 68,000 gallons of direct materials at December...
Iuuestion Help The McKnight Company has prepared a sales budget of 48,000 finished units for a 3 month period. The company has an inventory of 13.000 units of finished goods on hand at December 31 and has a target finished goods inventory of 18.000 is at the end of the succeeding quarter kes galions of direct materials to make one unto finished product. The company has inventory of 65.000 palons of direct materials at December 31 and has a target...
A company has the following annual budget data: Beginning finished goods inventory 56,000 units Sales 86,000 units Ending finished goods inventory 46,000 units Direct materials $ 12 per unit Direct labor $ 24 per unit Variable factory overhead $ 4 per unit Selling costs $ 2 per unit Fixed factory overhead $ 96,000 What are total budgeted production costs for the year? (CIA adapted)
Garver Industries has budgeted the following unit sales: 2020 January February March April May Units 10,000 8,000 9,000 11,000 15,000 The finished goods units on hand on December 31, 2019, was 2,000 units. Each unit requires 3 pounds of raw materials that are estimated to cost an average of $4 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. They also have...
A company has the following annual budget data: Beginning finished goods inventory 55,000 units Sales 85,000 units Ending finished goods inventory 45,000 units Direct materials $ 15 per unit Direct labor $ 25 per unit Variable factory overhead $ 8 per unit Selling costs $ 4 per unit Fixed factory overhead $ 95,000 What are total budgeted production costs for the year? (CIA adapted)
On January 1, 2020, the Johnson Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020. Sales Units: First quarter 5,600; second quarter 6,400; third quarter 7,000 Ending raw materials inventory: 40% of the next quarter's production requirements. Ending finished goods inventory: 25% of the next quarter's expected sales units. Third-quarter production: 7,440 Units The ending raw materials and finished goods inventories at December 31, 2019, follow the same percentage relationships to...
Madison Plastics makes specialized water lines for custom pools. They expect to sell 32,000 units in the next quarter. The beginning finished goods inventory balance is 8000 units and the target ending finished goods inventory balance should be 3500 for the quarter. There is 20,000 feet of water line in the warehouse. The target amount of water line materials on hand should equal one month of production. Production and sales are the same throughout the year. (Each unit takes 5...