PROBLEM 7-D RAW MATERIALS PURCHASES BUDGETBAGUO CITYFaye Co. manufactures a productusingbudgets for June 2016 are as follows:kalor raw materials. Production and inventoryOpening Inventories ClosingInventories12,400 kg11,400 unitsRaw materials11,000 kgFinished goods 15,150 unitsBudgeted sales for June amounted to 18,000 units. During the production process, it is usuallyfound that 5% of productlon units are scrapped as defective and this loss occurs after the rawmaterials have been placed in process.Required:1. How many kilograms of raw materials will be purchased in June?2. Assume that the cost of a kilogram of raw material is P16 and that 60% of purchases is paidin the month of purchase while the remaining in the month after the purchase, how much isthe cash payment for the June?

Budgeted production (in units) =Budgeted unit sales + Ending finished goods inventory- Opening…

PROBLEM 7-D RAW MATERIALS PURCHASES BUDGET BAGHIOCITY Faye Co. manufactures a product. using budgets for June 2016 are as follows: raw materials. Production and inventory Opening Inventories Closing Inventories 12,400 kg 11,400 units Raw materials 11,000 kg Finished goods 15,150 units Budgeted sales for June amounted to 18,000 units. During the production process, it is usually found that 5% of production units are scrapped as defective and this loss occurs after the raw materials have been placed in process. Required: 1. How many kilograms of raw materials wil be purchased in June? 2. Assume that the cost of a kilogram of raw material is P16 and that 60% of purchases is paid in the month of purchase while the remaining in the month after the purchase, how much is the cash payment for the June?

PROBLEM 7-D RAW MATERIALS PURCHASES BUDGET BAGHIOCITY Faye Co. manufactures a product. using budgets for June 2016 are as follows: raw materials. Production and inventory Opening Inventories Closing Inventories 12,400 kg 11,400 units Raw materials 11,000 kg Finished goods 15,150 units Budgeted sales for June amounted to 18,000 units. During the production process, it is usually found that 5% of production units are scrapped as defective and this loss occurs after the raw materials have been placed in process. Required: 1. How many kilograms of raw materials wil be purchased in June? 2. Assume that the cost of a kilogram of raw material is P16 and that 60% of purchases is paid in the month of purchase while the remaining in the month after the purchase, how much is the cash payment for the June?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 37BEB: Preparing a Direct Materials Purchases Budget Tulum Inc. makes a Mexican chocolate mix sold in...

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Refer to Cornerstone Exercise 8.2 for the production budgets for practice balls and match balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. FlashKicks policy is that 20 percent of the following months production needs for raw materials be in ending inventory. Beginning inventory in January for all raw materials met this requirement. Required: 1. Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming year. 2. What if FlashKick decreased the ending inventory percentage to 15 percent of the next months production needs? What impact would that have on the direct materials purchases budgets prepared in Requirement 1? Refer to Cornerstone Exercise 8.1, through Requirement 1. FlashKick requires ending inventory of product to equal 20 percent of the next months unit sales. Beginning inventory in January was 3,100 practice soccer balls and 400 match soccer balls. Required: 1. Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming year. 2. What if FlashKick wanted a production budget for the two product lines for the month of April? What additional information would you need to prepare this budget?
GLIO PROBLEM 7-D RAW MATERIALS PURCHASES BUDGET Faye Co. manufactures a product using 3 kg of raw materials. Production and inventory budgets for June 2016 are as follows: Opening Inventories Closing Inventories Raw materials 11,000 kg 12,400 kg Finished goods 15,150 units 11,400 units Budgeted sales for June amounted to 18,000 units. During the production process, it is usually found that 5% of production units are scrapped as defective and this loss occurs after the raw materials have been placed in process. Required: 2. Assume that the cost of a kilogram of raw material is P16 and that 60% of purchases is paid in the month of purchase while the remaining in the month after the purchase, how much is the cash payment for the June?
PROBLEM 7-D RAW MATERIALS PURCHASES BUDGET Faye Co. manufactures a product using 3 kg of raw materials. Production and inventory budgets for June 2016 are as follows: Opening Inventories Closing Inventories Raw materials 11,000 kg 12,400 kg Finished goods 15,150 units 11,400 units Budgeted sales for June amounted to 18,000 units. During the production process, it is usually found that 5% of production units are scrapped as defective and this loss occurs after the raw materials have been placed in process. Required: 1. How many kilograms of raw materials will be purchased in June?