Solution-Create a direct materials purchases budget for july

Create a direct materials purchases budget for july

Assignment Help Financial Accounting

Reference no: EM132973275

Langer Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 17 ounces of plastic costing $0.1 per ounce. Langer molds the plastic into the proper shape.

Langer has budgeted production of the housings for the next 4 months as follows:

Units

July 3,500

August 4,400

September 4,900

October 6,300

Inventory policy requires that sufficient plastic be in ending monthly inventory to satisfy 30% of the following month's production needs. The inventory of plastic at the beginning of July equals exactly the amount needed to satisfy the inventory policy.

Required:

Problem 1: Prepare a direct materials purchases budget for July, August, and September, showing purchases in units and in dollars for each month and in total. If required, round the total purchase cost to nearest whole value.

Reference no: EM132973275

Questions Cloud

Calculate the cost for location : The management must determine which city should be chosen that can save the company's expenses. To calculate the cost in each location, the management determine

How much cash is expected for payments on account in june : Wight typically pays 30% on account in the month of billing and 70% the next month. How much cash is required for payments on account in May?

Should this project be accepted : A 10,000$ cost in the first instance, followed by 7,500$ and 8,500$ cash flows at end of years 2 and 3, respectively. Should this project be accepted

Describe the research project and highlights report finding : Scenario: You are working for a multinational company's (can select any multinational company) Distribution Department and the company entering a new market and

Create a direct materials purchases budget for july : Create a direct materials purchases budget for July, August, and September, showing purchases in units and in dollars for each month and in total.

By how much will net income increase : Income taxes for the year were $750,000 and interest expense was $1,000,000. By how much will net income increase if sales increase by 12%

Suggestion of a possible outcome for the client : Identification of the historical origins and evolution of BOTH of your chosen theories - Details about the typical counsellor/client relationship and any other

How much do you need to invest today : If you can earn a 5% annual return (with annual compounding), how much do you need to invest today to ensure you can buy the car

Explain the mechanism of substitution of present consumption : Briefly explain the mechanism of substitution of present consumption for future consumption demonstrated by fisher's separation theorem

User Account

All Pages

Create a direct materials purchases budget for july

Reference no: EM132973275

Reference no: EM132973275

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT