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
Describe the following questions:- Q.1 Explain how financial statements assist in the capital allocation process. How are financial statements limited? Which financial statement

Q. What do you understand by Exempt Organization? Exempt Organization - Organization that is normally exempt from paying federal income tax. Exempt organizations comprise relig

Q. What do you mean by Reasonable Assurance? Reasonable Assurance - Management's assessment of effectiveness of internal control over financial reporting is expressed at the le

Can you help me with that?

On November 1, 2011, Leetch Ltd. borrows $400,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note needs equal total payments every year on Oc

Open "Hoyle CPA: Earnings Per Share." Under "Free Questions" select "Financial Accounting & Reporting."

How do I know how much is service fee ?

when youre using accounting software why would you use hot keys and shortcuts a.to quickly access commands b.to input data for you c.to start the program d.to write checks

Below given th einformation of the stock calculate the required return of the stock. Dividend = $4.50 every year Current sales price of stock = $ 79.85 per share Formul

Richard Company had 102,000 shares of $5 par value common stock issued and outstanding before repurchasing 10,200 shares for $76,500. Richard had received $2,040,000 cash from shar