Prepare a direct materials purchases budget, Financial Accounting

Question:

Mosman Ltd produces a single product. The projected sales for the first month of the coming year and the beginning and ending inventory data are as follows:

Sales

80,000 units

Unit price

$12

Beginning inventory

6,000 units

Desired ending inventory

9,000 units

Each unit requires three kilograms of material costing $2 per kilogram. The beginning inventory of raw materials is 2,500 kilograms, and the company wants to have 4,500 kilograms of material in inventory at the end of the month. Each unit requires one hour of direct labour time, which is billed at $8 per hour.

(A) Prepare a production budget for the first month.

(B) Prepare a direct materials purchases budget for the first month in kilograms and dollars.

(C) With which estimate does budgeting begin? Explain why this is so and provide examples to illustrate your understanding.

Posted Date: 2/18/2013 4:50:50 AM | Location : United States







Related Discussions:- Prepare a direct materials purchases budget, Assignment Help, Ask Question on Prepare a direct materials purchases budget, Get Answer, Expert's Help, Prepare a direct materials purchases budget Discussions

Write discussion on Prepare a direct materials purchases budget
Your posts are moderated
Related Questions
After all events have been recorded, Lang's obligations to creditors represents what percent of total assets? a).record the events under an accounting equation b. After all e

USAco is the wholly-owned U.S. subsidiary of ASIAco, a Japanese parent corporation that manufactures automobiles and sells them to USAco for resale in the United States. ASIAco sel

1) Which inventory methods are used by Lowe's? (Mark all that apply.) a. Weighted-average b. FIFO c. LIFO d. Dollar-value LIFO e. Retail LIFO f. Retail Dollar-value LIFO g. If mult

Q. Evaluation of Net working capital? The evaluation presumes that several key variables will remain constant such as the inflation rates, discount rate and the taxation rate.

Question: Zelo, Inc. stock has a beta of 1.23. The risk-free rate of return is 4.5% and the market rate of return is 10%. What is the amount of the risk premium on Zelo stock?

a,b,c carried on business and their profit and loss ratio 3:4:5.they decided dissolve the partnership as on 1st july,2011.the following balance sheet..... creditors-10000 loan A/c-

Since 1968, Dracula Limited has traded in Doncaster, South Yorkshire as a manufacturer of fancy-dress and theatrical costumes. It produces a wide range of general theatrical costum

Pro-forma accounts under Trustee Act v\:* {behavior:url(#default#VML);} o\:* {behavior:url(#default#VML);} w\:* {behavior:url(#default#VML);} .shape {behavior:url(#def

Dissolutions situations There are two situations that need to be considered under dissolutions. These are:- 1) Where the assets are sold at once (one single transaction) 2) As

1.  What cost flow assumption does the company use to value inventories? 2.  What was the amount of expense that the company reported for inventory write-downs during 2011? 3