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Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 17,600 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 26,900 units. b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,200 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: April May June July August Dudgeted sales in Unita 123,000 Budgeted sales (units) Total needs Required: 1. Prepare a production budget for the All Weather for April, May, June and July, 156,000 217,000 Required production 116,000 60,200 April 0 0 May 4 0 0 June 0 0 July 0 0

Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 17,600 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 26,900 units. b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,200 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: April May June July August Dudgeted sales in Unita 123,000 Budgeted sales (units) Total needs Required: 1. Prepare a production budget for the All Weather for April, May, June and July, 156,000 217,000 Required production 116,000 60,200 April 0 0 May 4 0 0 June 0 0 July 0 0

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...
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Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 17,600 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 26,900 units. b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,200 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: April May June July August Budgeted sales in Unita 123,000 156,000 217,000 116,000 60,200 Required: 1. Prepare a production budget for the All Weather for April, May, June and July. Budgeted sales (units) Total needs Required production April 0 0 May + 0 0 June 0 0 July 0 0
Transcribed Image Text:Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 17,600 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 26,900 units. b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,200 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: April May June July August Budgeted sales in Unita 123,000 156,000 217,000 116,000 60,200 Required: 1. Prepare a production budget for the All Weather for April, May, June and July. Budgeted sales (units) Total needs Required production April 0 0 May + 0 0 June 0 0 July 0 0
2. Prepare a direct materials purchases budget showing the quantity of XL 12 components to be purchased for April, May and June and for the quarter in total. Required production (units) XL 12 components needed per unit Production needs Total XL 12 needs Material XL 12 purchases April 0 0 May 0 0 June 0 0 Second Quarter 0 0
Transcribed Image Text:2. Prepare a direct materials purchases budget showing the quantity of XL 12 components to be purchased for April, May and June and for the quarter in total. Required production (units) XL 12 components needed per unit Production needs Total XL 12 needs Material XL 12 purchases April 0 0 May 0 0 June 0 0 Second Quarter 0 0
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