White Corporation's budget calls for the following sales for next year:
Quarter 1 96,500 units Quarter 2 82,000 units Quarter 3 67,700 units Quarter 4 98,800
Each unit of the product requires 3 pounds of direct materials. The company's policy is to begin each quarter with an inventory of product equal to 5% of that quater's estimated sales requirements and an inventory of direct materials equal to 20% of that quarter's estimated direct materials requirements for production.
1. Determine the production budget for the second quarter:
Budgeted sales_____________
Desired ending inventory________________
Total units needed ___________________
Beginning inventory ____________________
Total units to produce__________________
2. Determine the materials purchases budget for the second quater:
Budgeted production _________________
Direct materials (lbs.) per unit produced ____________________
Direct materials needed in production
Desired ending inventory of direct materials (lbs.)_____________
Total direct materials needed ________________________
Beginning inventory of direct materials ___________________
Budgeted purchases of direct materials (lbs.) _______________
White Corporation's budget calls for the following sales for next year:
Quarter 1 96,500 units Quarter 2 82,000 units Quarter 3 67,700 units Quarter 4 98,800
Each unit of the product requires 3 pounds of direct materials. The company's policy is to begin each quarter with an inventory of product equal to 5% of that quater's estimated sales requirements and an inventory of direct materials equal to 20% of that quarter's estimated direct materials requirements for production.
1. Determine the production budget for the second quarter:
Budgeted sales_____________
Desired ending inventory________________
Total units needed ___________________
Beginning inventory ____________________
Total units to produce__________________
2. Determine the materials purchases budget for the second quater:
Budgeted production _________________
Direct materials (lbs.) per unit produced ____________________
Direct materials needed in production
Desired ending inventory of direct materials (lbs.)_____________
Total direct materials needed ________________________
Beginning inventory of direct materials ___________________
Budgeted purchases of direct materials (lbs.) _______________
Related questions
PLEASE SHOW WORK
On January 1, 2014, the Hardin Company budget committee hasreached agreement on the following data for the 6 months endingJune 30, 2014.
| Sales units: | First quarter 5,000; second quarter 6,000; third quarter7,000 | |
| Ending raw materials inventory: | 40% of the next quarterâs production requirements | |
| Ending finished goods inventory: | 25% of the next quarterâs expected sales units | |
| Third-quarter production: | 7,200 units |
The ending raw materials and finished goods inventories at December31, 2013, follow the same percentage relationships to productionand sales that occur in 2014. 3 pounds of raw materials arerequired to make each unit of finished goods. Raw materialspurchased are expected to cost $4 per pound.
1quarter 2quarter
Expected Unit Sales: ___________________________________________
Add Desired Ending Finished GoodsUnit:____________________ _______________________
Total Required Units: ___________________________________________
Less Begining Finished Goods Unit: ___________________________________________
Required Production Units: ___________________________________________
Prepare a direct materials budget by quarters for the 6-monthperiod ended June 30, 2014.
Units to be Produced: ___________________________________________
Direct Materials per unit: ___________________________________________
Total Pounds Needed for Production: ___________________________________________
Add: Desired Ending Direct Materials____________________ _______________________
Total Materials Required: ___________________________________________
Less Beginning Direct Materials: ___________________________________________
Direct Materials Purchases: ___________________________________________
Cost Per Pound: ___________________________________________
Total Cost of Direct Materials Purchases:____________________ _______________________
Rida, Inc., a manufacturer in a seasonal industry, is preparingits direct materials budget for the second quarter. It plansproduction of 237,000 units in the second quarter and 274,500 unitsin the third quarter. Raw material inventory is 64,500 pounds atthe beginning of the second quarter. Other information follows: |
| Direct materials | Each unit requires 0.50 poundsof a key raw material, priced at $187 per pound. The company plansto end each quarter with an ending inventory of materials equal to60% of next quarterâs budgeted materials requirements. |
| Prepare a direct materialsbudget for the second quarter. |
