Tonga toys manufactures and distributes a number of

Assignment Help Accounting Basics

Reference no: EM13483006

Tonga Toys manufactures and distributes a number of products to retailers. One of these products, Playclay, requires four pounds of material A135 in the manufacture of each unit. The company is now planning raw materials needs for the third quarter-July, August, and September. Peak sales of Playclay occur in the third quarter of each year. To keep production and shipments 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 6,000 units plus 33% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 18,540 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 for material A135 is budgeted to be 82,600 pounds.
c.	The company maintains no work in process inventories.

A sales budget for Playclay for the last six months of the year follows.

	Budgeted Sales in Units
July	38,000
August	48,000
September	68,000
October	33,000
November	18,000
December	8,000

Required:
1.	Prepare a production budget for Playclay for the months July, August, September, and October. (Input all amounts as positive values. Do not round intermediate calculations.)

Playclay Production Budget
	July	August	September	October
Budgeted sales
:

Total needs
:

Required production

3.	Prepare a direct materials budget showing the quantity of material A135 to be purchased for July, August, and September and for the quarter in total. (Input all amounts as positive values. Do not round intermediate calculations.)

Playclay Direct Materials Budget
	July	August	September	Third Quarter
Production needs
:

Total Material A135 needs
:

Material A135 purchases

Reference no: EM13483006

Questions Cloud

An investment offers a 11 percent total return over the : an investment offers a 11 percent total return over the coming year. bill bernanke thinks the total real return on this

The fair value of exactas net assets was equal to the book : exacto company reported the following net income and dividends for the years indicated year net income dividends 20x5

What are the advantages and disadvantages of mergers and : you are functional managers in a relatively small but high-growth trucking company. the company was started 10 years

The correct order of presentation in a classified balance : the correct order of presentation in a classified balance sheet for the following current assets isa accounts

Tonga toys manufactures and distributes a number of : tonga toys manufactures and distributes a number of products to retailers. one of these products playclay requires

Develop a spreadsheet to perform a cost benefit analysis to : mcs cio has determined that the up front costs of developing their new web site will be 54000. the site will take 6

Earnings per share eps is the most featured single : earnings per share eps is the most featured single financial statistic about modern corporations. daily published

In mid-march 2007 the us dollar equivalent of a euro was : in mid-march 2007 the u.s. dollar equivalent of a euro was 1.3310. in mid-july2009 the u.s. dollar equivalent of a euro

In a classified balance sheet assets are usually classified : in a classified balance sheet assets are usually classified asa current assets long-term assets property plant and

User Account

All Pages