Constructing direct materials budget

Assignment Help Managerial Accounting
Reference no: EM1347769

Preparing the direct materials budget: It takes three pounds of direct materials to produce the Regular product and five pounds of direct materials to produce the Deluxe product. It is the company's policy to maintain an inventory of direct materials on hand at the end of each month equal to 30% of the next month's production needs for the Regular product and 20% of the next month's production needs for the Deluxe product. Direct materials inventory on hand at June 30 were 9,000 pounds for the Regular product and 15,000 pounds for the Deluxe product. The cost per pound of materials is $5 Regular and $7 Deluxe. Assume that the production budget reveals the following.

July August September
Units to be produced for Regular
10,000 6,000 9,000

July August September
Units to be produced for Deluxe
15,000 10,000 14,000

Lastly, assume that in October the Regular product requires 24,000 pounds and Deluxe 60,000 pounds of material.

 

Reference no: EM1347769

Cost recovery-blue company

On November 4, 2006, Blue Company acquired an asset (27.5-year residential real property) for $100,000 for use in its business. In 2006 and 2007 respectively

Compute cost of production changes

Speedy Dress Manufacturing has two workstations, cutting and finishing. The cutting station is limited by the speed of operating the cutting machine. Finishing is limited by

Prepare the journal entry or entries with explanations

Prepare the journal entry or entries, with explanations, that should be recorded on December 31, 2011, by Ludwick. (Prepare the lease amortization schedule for all five paym

Food and merchandise revenue

The organizers will pay several companies to operate the parking, food, and merchandise concessions. They will pay $24,000 plus 15% of all parking, food, and merchandise reven

Estimate the cost of the inventory destroyed

1. Kauai Store's inventory is destroyed by a fire on September 5, 2013. The following data for year 2013 are available from the accounting records. Estimate the cost of the in

Concerns with segment reporting

Do you think that companies are worried about disclosing too much information if it comes to segment reporting? What's wrong with the reporting too much information? What do

Calculate the revised material handling costs

Calculate the material handling rate that would have been used by Eloise Smiths predecessor at East Coast Marine and calculate the revised material handling costs to be alloca

Monthly variable costs to process into staples

Grade A wire requires $450,000 of monthly variable costs to process into staples, which can be sold in the market on 5/1/XX for $7.00 per pound. Grade B wire requires $600,000

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd