MGAB03H3 Lecture Notes - Lecture 10: Icq

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peachturtle345

20 Jan 2016

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Desired ending inventory (% of next month"s production) Desired ending inventory (% of next month"s sales) 10. 31 production, labour, materials, and sales budgets - bullen & company. Notice that the first quarter is the first three months. April"s information is needed for some of march"s budget calculations. 17,000 (a) current month"s sales (b) 50% of following month"s sales (2)direct labour budget (hours) ,000: at least three behavioural considerations in the profit-planning and budgeting process include the following. The individual manager"s goals may conflict with the firm"s goals. Setting targets in a budget process helps focus and motivate managers to achieve the firm"s objectives. Participation from lower-level managers and other employees has two benefits. It uses information from those closest to the process, and the mangers have a stronger commitment to the budget itself. The entire budget process is a form of communication. Feedback and other forms of improving communication are essential throughout the process.

Related Questions

1. (TCO 7) The culmination of preparing operating budgets is the: (Points : 4)

pro forma balance sheet.
production budget.
cash budget.
pro forma income statement.

Question 2. 2. (TCO 7) The starting point in preparing a master budget is the preparation of the: (Points : 4)

production budget.
sales budget.
purchasing budget.
personnel budget.

Question 3. 3. (TCO 7) The production budget shows planned sales of 32,000. Beginning inventory is 5,600. Units to be produced are 33,600. What is the desired ending inventory? (Points : 4)

4,000
5,600
6,400
7,200

Question 4. 4. (TCO 7) The direct materials budget shows:

Units to be produced	3,000
Production needs	12,000
Total needs	13,200

What are the direct materials per unit? (Points : 4)

0.44 pounds
4.0 pounds
4.4 pounds
Cannot be determined from the data provided.

Question 5. 5. (TCO 7) ABC Company expects the following sales and collection pattern for the last four months of the year:

Month	Cash Sales	Credit Sales	Total Sales
September	$25,000	$65,000	$90,000
October	$28,000	$72,000	$100,000
November	$26,000	$68,000	$94,000
December	$30,000	$71,000	$101,000

Â· 5% of credit sales are collected in the same month
Â· 65% of sales are collected in the following month
Â· 25% of sales are collected in the second following month
What are the projected cash collections for the month of December? (Points : 4)

$65,750
$92,200
$95,750
$99,000

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.) _______________

coralyellowjacket733

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:____________________ _______________________

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MGAB03H3 Lecture Notes - Lecture 10: Icq

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