Reference no: EM131202384
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 3,000 units of Supermix plus 20% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 12,400 units. b. The raw materials inventory on hand at the end of each month must be equal to one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 66,000 cc of solvent H300. c. The company maintains no work in process inventories. A sales budget for Supermix for the last six months of the year follows. Budgeted Sales in Units July 47,000 August 52,000 September 62,000 October 42,000 November 32,000 December 22,000 Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October. 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.
|
The effects on the accounting equation
: When a company buys equipment for $168,000 and pays for one third in cash and the other two thirds is financed by a note payable, which of the following are the effects on the accounting equation?
|
|
Determine weighted-average number of shares outstanding
: On January 1, 2015, Wilke Corp. had 535,000 shares of common stock outstanding. During 2015, it had the following transactions that affected the Common Stock account. Determine the weighted-average number of shares outstanding as of December 31, 2015..
|
|
Made at time of the issuance of the bonds and warrants
: Illiad Inc. has decided to raise additional capital by issuing $179,300 face value of bonds with a coupon rate of 10%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be i..
|
|
Bond discount is amortized semiannually on straight-line
: Aubrey Inc. issued $4,991,400 of 8%, 10-year convertible bonds on June 1, 2014, at 98 plus accrued interest. The bonds were dated April 1, 2014, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line b..
|
|
Prepare production budget for supermix for the months
: Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. Prepare a product..
|
|
Total materials variance and price and quantity variances
: The standard cost of Product B manufactured by MIT Company includes 2.40 units of direct materials at $5.20 per unit. During June, 27,400 units of direct materials are purchased at a cost of $5.09 per unit, and 27,400 units of direct materials are us..
|
|
What is the amount of the ending inventory
: Axle Inc. updates its inventory perpetually. Its beginning inventory is $35,000, goods purchased during the period cost $120,000, and the cost of goods sold for the period is $140,000. What is the amount of the ending inventory? Manning Company updat..
|
|
What sequence should orders be filled to maximize profits
: Roswell Inc has 8,000 machine hours available each month. The following information on the company's three products is available: Product 1 Product 2 Product 3 Contribution margin per unit $ 28.00 $ 57.00 $ 20.50 Machine hours per unit 3.00 2.00 1.00..
|
|
Additional operating expenses associated
: The following information relates to the Dexter coy. for the upcoming year. Amount Per Unit Sales $ 5,200,000 $ 13.00 Cost of goods sold 3,800,000 9.50 Gross margin 1,400,000 3.50. Fortunately, there will be no additional operating expenses associate..
|