Zira Company reports the following production budget for the next four months. Each finished unit requires five pounds of direct materials, and the company wants to end each month with direct materials inventory equal to 20% of next month's production neec Beginning direct materials inventory for April was 634 pounds. Direct materials cost $6 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) April 634 May 675 Duly 647 June Units to produce 667 ZIRA COMPANY Direct Materials Budget April May June Units to produce Materials needed for production (pounds) Total materlals required (pounds) Materials to purchase (pounds) Cost of direct materiais purchases

Zira Company reports the following production budget for the next four months. Each finished unit requires five pounds of direct materials, and the company wants to end each month with direct materials inventory equal to 20% of next month's production neec Beginning direct materials inventory for April was 634 pounds. Direct materials cost $6 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) April 634 May 675 Duly 647 June Units to produce 667 ZIRA COMPANY Direct Materials Budget April May June Units to produce Materials needed for production (pounds) Total materlals required (pounds) Materials to purchase (pounds) Cost of direct materiais purchases

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...

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Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: In Shalimars experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are 4,900,000 and for the fourth quarter of the current year are 6,850,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. 3. What if the recession led Shalimars top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.
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