Required information [The following information applies to the questions displayed below.] Each gallon of Old Guard, a popular aftershave lotion, requires 2.75 ounces of ocean scent. Budgeted production of Old Guard for the first three quarters of 2019 is as follows: Quarter I Quarter II Quarter III 10,000 gallons 18,000 gallons 12,000 gallons Management's policy is to have on hand at the end of every quarter enough ocean scent inventory to meet 33% of the next quarter's production needs. At the beginning of Quarter I, 9,075 ounces of ocean scent were on hand. Required: a. Calculate the number of ounces of ocean scent to be purchased in each of the first two quarters of 2019. Quarter I Quarter I| Number of ounces

Required information [The following information applies to the questions displayed below.] Each gallon of Old Guard, a popular aftershave lotion, requires 2.75 ounces of ocean scent. Budgeted production of Old Guard for the first three quarters of 2019 is as follows: Quarter I Quarter II Quarter III 10,000 gallons 18,000 gallons 12,000 gallons Management's policy is to have on hand at the end of every quarter enough ocean scent inventory to meet 33% of the next quarter's production needs. At the beginning of Quarter I, 9,075 ounces of ocean scent were on hand. Required: a. Calculate the number of ounces of ocean scent to be purchased in each of the first two quarters of 2019. Quarter I Quarter I| Number of ounces

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Gamma Ltd. manufactures and sells two products, Ago and Bago. In July 2019 Gamma’sBudget Department gathered the following data in order to prepare the individual budgets in the master budget for 2020: 2020 Projected Sales :Product Unit Price Abba 90,000 $ 180 Baba 70,000 $ 250 2020 Inventories in Units: Target: Product January 1, 2020 December 31, 2020Abba 21,000 25,000 Baba 10,000 11,000To produce 1 unit of Ago and Bago, the following direct materials are used: Direct Material Unit Ago Bago A Pounds 5 6 B Pounds 3 4 C Each 0 1 Projected data for 2020 with respect to direct materials are as follows: Direct Material Purchase Price: Target Inventories January 1, 2020 December 31, 2020 A $14 32,000 pounds 35,000 pounds B $ 6 27,000 pounds 30,000 pounds C $ 4 6,000 units 7,000 units Projected direct manufacturing labor requirements and rates for 2020 are as follows: Product Hours Per Unit Rate per Hour Ago 4 $15Bago 5 $19Manufacturing overhead is allocated at the rate of $20 per…
Gamma Ltd. manufactures and sells two products, Ago and Bago. In July 2019 Gamma’sBudget Department gathered the following data in order to prepare the individual budgets in the master budget for 2020:2020 Projected Sales :Product Unit Price Abba 90,000 $ 180 Baba 70,000 $ 250 2020 Inventories in Units: Target:Product January 1, 2020 December 31, 2020Abba 21,000 25,000 Baba 10,000 11,000To produce 1 unit of Ago and Bago, the following direct materials are used: Direct Material Unit Ago Bago A Pounds 5 6 B Pounds 3 4 C Each 0 1 Projected data for 2020 with respect to direct materials are as follows: Direct Material Purchase Price: Target Inventories January 1, 2020 December 31, 2020 A $14 32,000 pounds 35,000 pounds B $ 6 27,000 pounds 30,000 pounds C $ 4 6,000 units 7,000 units Projected direct manufacturing labor requirements and rates for 2020 are as follows: Product Hours Per Unit Rate per Hour Ago 4 $15Bago 5 $19Manufacturing overhead is allocated at the rate of $20 per…
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For next year, David Company has budgeted sales of 8,000 units, target ending inventory of 1,000 units and a beginning inventory of 300 units. How ?many units should be purchased 9,300 O 8,700 O 5,700 6,300 O 7,700 O
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Dorothy Taylor is preparing the 2022 budget for one of Current Designs’ rotomoulded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2022. Quarter 1 2,900 kayaks Quarter 2 3,400 kayaks Quarter 3 2,600 kayaks Quarter 4 2,600 kayaks Current Designs’ policy is to have finished goods ending inventory in a quarter equal to 25% of the next quarter’s anticipated sales. Preliminary sales projections for 2023 are 1,100 units for the first quarter and 3,400 units for the second quarter. Ending inventory of finished goods at December 31, 2021, will be 725 rotomoulded kayaks.Production of each kayak requires 40 kg of polyethylene powder and a finishing kit (rope, seat, hardware, etc). Company policy is that the ending inventory of polyethylene powder should be 20% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on…
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