Prepare a direct materials purchases budget

Assignment Help Accounting Basics
Reference no: EM13157251

Ivan's company produced stuffed toy animals; one of these is randy the reindeer. Each reindeer takes 0.10 yard of fabric and three ounces of poly-fiberfill. Fabric costs $3.50 per yard, and poly-fiberfill is $.05 per ounce. Ivan's has budgeted production of stuffed reindeer for the next four months as follows:

Units
October 40,000
November 80,000
December 50,000
January 60,000

Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 15% of the following month's production needs and sufficient poly-fiberfill be in inventory to satisfy 30% of the following month's production needs. Inventory of fabric and poly-fiberfill at the beginning of October equals exactly the amount needed to satisfy the inventory policy.

Each reindeer produced requires (on average) 0.2 direct labor hour. The average cost of direct labor is $10.50 per hour

1. Prepare a direct materials purchases budget of fabric for ht last quarter of the year showing purchases in units and in dollars for each month and for the quarter in total.

2. Prepare a direct materials purchases budget of poly-fiberfill for the last quarter in total.

3. Prepare a direct labor budget for the last quarter of the year showing the hours needed and the direct labor cost for each month and for the quarter in total.

Reference no: EM13157251

Previous Q& A

  Calculate the final temperature

30.0 mL of water at 24.5 °C was mixed with 40.0 mL of water at 40.0 °C. If the specific heat of water is 4.184 J/g °C and no heat was absorbed by the calorimeter, then the final temperature is _____ °C. (Report to the proper number of significant ..

  What would be the price charged in market

Assume the price charged in market 2 was $10, what would be the price charged in market 1?

  What is the effective interest rate of an investment

How much is this account worth after 28 years? Submit your answer to the nearest dollar. What is the effective interest rate of an investment if the nominal annual interest rate is 7.77%.

  Policy requiring the ending inventories

Company policy requires that ending inventories for each month be 15% of next month's sales. At the beginning of April, the beginning inventory of mats met that policy.

  Probability randomly selected hen weighs more

What is the probability that a randomly selected from such a hen weighs more than 11.5 grams. What is the probability that the average of a random sample of 25 eggs from such hens will be less than 5.8 grams?

  What contaminating proteins would likely co-purify

A standard procedure in purifying tubulin is to extract the tissue on ice, then add GTP and warm the tissue extract to 37°C. The warmed extract is then centrifuged at a speed insufficient to pellet average sized proteins, but sufficient to pellet ..

  Define how many moles of copper atoms were lost

How many moles of copper atoms were lost? ii. The Faraday constant. iii. The charge of one electron. iv. The mass of one electron.

  Reported in consolidated balance sheet

Tanner Company was acquired for cash in a transaction that created goodwill. At what amounts will the building and land be reported in the consolidated balance sheet immediately following the purchase?

  Determine which is the non aqueous layer

a.) Can you be certain that the organic layer would from the upper layer? Eplain in details. b.) How could you test to determine which is the non aqueous layer? Explain in details.

  What are the percentage increases in the price of food

What are the percentage increases in the price of food and in the price of clothing and what is the percentage increase in the CPI?

Reviews

Write a Review

 

Similar Q& A

  Discuss possible factors that contribute to these difference

The process by which accounting standards has evolved over time worldwide differs significantly from country to country based on many factors.

  Use of a subsidiary ledger and allowance account

Describe how accounts receivable arise and how they are accounted for, including the use of a subsidiary ledger and an allowance account.

  Direct materials purchases

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

  What sales mix will maximize profits

The company has 40,000 machine hours available for production. What sales mix will maximize profits?

  Double-declining-balance with salvage value

Delivery Vehicle-Henry purchase a new delivery vehicle on April 1,2011 for 80,000. The vehicle is to be depreciated over 7 years using double-declining-balance with a salvage value of 10,000.

  Increase affect operating profits

If Clark initiates a price increase for both product lines, how will customer demand change? How will the price increase affect operating profits

  Prepare the manufacturing staffs calculations

Prepare the manufacturing staffs calculations, In the fIrst set of calculations, the staff used a discount rate of 20 percent, a fIve-year time horizon, and ignored taxes and terminal value. What is the relative attractiveness of these three alternat..

  Measuring and recording pension expense problem

Prepare the journal entry to record pension expense and the employers' contribution to the pension plan in 2011.

  Non-controlling interest income

Jeremy reported net income of $50,000 for 2003. Non-controlling interest income that will appear in the consolidated income statement for 2003 is:

  Can mary claim a deemed-paid

Can Mary claim a deemed-paid (indirect) FTC on her form 1040 with respect to receipt of the dividend distribution from CanCo?

  What is the common stock

What is the common stock, retained earnings, cost of goods sold and net income. I have 5000 cash, 10000 inventory,45000 building,5000accounts payable.total liabitities stockholders 60000,revenues 80000 and administrative expeneses 10000

  Implied value of each warrant

Upstate Water Company just sold a bond with 50 warrants attached. The bonds have a 20-year maturity and an annual coupon of 12%, and they were issued at their $1,000 par value. The current yield on similar straight bonds is 15%. What is the implie..

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