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Wyatt Co. has budgeted the following unit sales:
2011 Units
Jan 10,000
Feb 8,000
March 9,000
April 11,000
May 15,000
The finished goods units on hand on Dec. 31, 2010 was 2,000 units. Each unit requires 2 pounds of raw material that are estimated to cost an average of $4 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 10% of next month's anticipated sales. They also have a policy of maintaining a raw material inventory at the end of each month equal to 20% of the pounds needed for the following month's production. There were 3,920 pounds of raw material on hand at Dec. 31, 2010
For the first quarter of 2010, prepare (1) a production budget and (2) a direct materials budget.
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Brennan Steel Corporation as lessee signed a lease agreement for equipment for five years, starting December 31, 2007. yearly rental payments of $32,000 are to be made at the beginning of each lease year.
The role and process of recognising depreciation in accounting reports, and by identifying accounting concepts which provide the justification for recognising depreciation.
Crown Industries has the following information about its standards and production activity for December-Assume the allocation base for fixed overhead costs is the number of units to be produced.
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