Dog EXERCISE 8-3 Direct Materials BudgetⒸLO8-4Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia.The cost of the musk oil is $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the firstquarter of Year 3:Year 2First Second Third FourthBudgeted production, in bottles 60,000 90,000 150,000 100,000Year 3First70,000The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 36,000 grams ofmusk oil will be on hand to start the first quarter of Year 2.Required:Using Schedule 3 as your guide, prepare a direct materials budget for musk oil, by quarter and in total for Year 1

When developing a production budget, it is necessary to determine how much raw material will need to…

EXERCISE 8-3 Direct Materials Budget LO8-4 Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia The cost of the musk oil is $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Year 2 Year 3 First Second Third Fourth First Budgeted production, in bottles 60,000 90,000 150,000 100,000 70,000 The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 36,000 grams of musk oil will be on hand to start the first quarter of Year 2. Required: Usine Schedule 3

EXERCISE 8-3 Direct Materials Budget LO8-4 Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia The cost of the musk oil is $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Year 2 Year 3 First Second Third Fourth First Budgeted production, in bottles 60,000 90,000 150,000 100,000 70,000 The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 36,000 grams of musk oil will be on hand to start the first quarter of Year 2. Required: Usine Schedule 3

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 3BE: Pasadena Candle Inc. budgeted production of 785,000 candles for January. Wax is required to produce...

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Direct Materials Budget Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter’s production needs. Some 36,000 grams of musk oil will be on hand to start the first quarter of Year 2. Required: Using Schedule 3 as your guide, prepare a direct materials budget for musk oil, by quarter and in total, for Year 2.
Quarter 1 Selling price per bag 28,000 bags $60 Managerial Accounting, 6th Canadian Edition, by Weygandt, Kieso, Kimmel and Aly "Group Project Farm Supply Company" manufactures and sells a fertilizer called Snare. The following data are available for preparing budgets for Snare for the first two quarters of 2025. 1. Sales: 2. Direct materials: Each bag of Snare requires Quarter 2 42,000 bags 4 kilograms of Gumm at a cost of $4.00 per kilogram and 6 kilograms of Tarr at $1.50 per kilogram. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 8,000 12,000 18,000 Gumm (kilograms) 9,000 10,000 13,000 Tarr (kilograms) 4. Direct labour: Direct labour time is 15 5. The company expects selling and administrative expenses to be 6. It expects income taxes to be 30% of the income from operations. 14,000 20,000 25,000 minutes per bag at an hourly rate of 15% of sales plus $14.00 $175,000 per quarter. Your assistant has prepared two budgets: (1) The manufacturing…
Question 6 View Policies Current Attempt in Progress Crane Company determines that 59000 pounds of direct materials are needed for production in July. There are 3700 pounds of direct materials on hand at July 1 and the desired ending inventory is 3300 pounds. If the cost per unit of direct materials is $3, what is the budgeted total cost of direct materials purchases? ort $175800 O $180600. O $178200. O $173400. ea Chp ins prt sc fho 12 home delete % 5 & 7 backspace lock T P hom G H K enter B pause t shift ctri NM N
EXERCISE 9-3 Direct Materials Budget [L04] Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is 150 roubles per kilogram. (Siberia is located in Russia, whose currency is the rouble.) Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Year 2 Year 3 First Second Third Fourth First Budgeted production, in bottles .... 60,000 90,000 150,000 100,000 70,000 Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 36,000 grams of musk oil will be on hand to start the first quarter of Year 2. Chapter 9 Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. At the…
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Problem 9-34 Relationships of the Master-Budget Components (LO 9-3, 9-5, 9-6) Badlands Inc. manufactures a household fan that sells for $40 per unit. All sales are on account, with 40 percent of sales collected in the month of sale and 60 percent collected in the following month. The data that follow were extracted from the company's accounting records. • Badlands maintains a minimum cash balance of $14,000. Total payments in January 20x1 are budgeted at $315,000. • A schedule of cash collections for January and February of 20x1 revealed the following receipts for the period: From December 31 accounts receivable From January sales From February sales March 20x1 sales are expected to total 5,000 units. Finished-goods inventories are maintained at 20 percent of the following month's sales. The December 31, 20x0, balance sheet revealed the following selected figures: cash, $24,300; accounts receivable, $177,600; and finished goods, $25,050. Cash Receipts January February $177,600 120,000…
Question 8 Direct Labor Cost Budget Stevenson Inc. budgeted production of 45,000 personal journals in 20Y6. Each journal requires assembly. Assume that two minutes are required to assemble each journal. If assembly labor costs $17 per hour, determine the direct labor cost budget for 20Y6. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar.$fill in the blank 1
Chapter 9 Profit Planning and Flexible Budgets BRIEF EXERCISES: SET A Brief Exercise 9-21 Preparing a Sales Budget OBJE Patrick Inc. sells industrial solvents in 5-gallon drums. Patrick expects the following units to be sold in the first 3 months of the coming year: Examp January 41,000 February 38,000 March 50,000 beupe The average price for a drum is $35. Required: Prepare a sales budget for the first 3 months of the coming year, showing units and sales revenue by month and in total for the quarter. Brief Exercise 9-22 Preparing a Production Budget OBJE Patrick Inc. makes industrial solvents. In the first 4 months of the coming year, Patrick expects the following unit sales: Exam 41,000 January February 38,000 March 50,000 April 51,000 Patrick's policy is to have 25% of next month's sales in ending inventory. On January 1, it is ex- pected that there will be 6,700 drums of solvent on hand. Required: Prepare a production budget for the first quarter of the year. Show the number of…
Brief Exercise 9-23 Preparing a Direct Materials Purchases Budget OB Ex: Patrick Inc. makes industrial solvents sold in 5-gallon drums. Planned production in units for the first 3 months of the coming year is: January 43,800 February 41,000 March 50,250 Each drum requires 5.5 gallons of chemicals and one plastic drum. Company policy requires that ending inventories of raw materials for each month be 15% of the next month's production needs. That policy was met for the ending inventory of December in the prior year. The cost of one gallon of chemicals is $2.00. The cost of one drum is $1.60. (Note: Round all unit amounts to the nearest unit. Round all dollar amounts to the nearest dollar.) Required: 1. Calculate the ending inventory of chemicals in gallons for December of the prior year for January and February. What is the beginning inventory of chemicals for January? 2. Prepare a direct materials purchases budget for chemicals for the months of January and February. 3. Calculate the…
QUESTION 1 New Norm Fashion produces washable face mask shield. The following budgeted/ actual information is provided regardingto the production of face mask: RM/unit Selling price 50.00 Direct materials 8.00 Direct labour 5.00 Variable production overheads 3.00 Details of its operations for the month of May and June 2021 are as follows: May June Production 500 380 Sales 300 500 Fixed production overheads are budgeted at RM4,000 per month and are absorbed on a unit basis. The normal level of production is budgeted at 400 units per month. Other costs: RM/month Fixed selling 4,000 Fixed administration 2,000 Variable sales commission 5% of sales revenue There was no opening inventory of face mask at the beginning of May. Required: (a) Prepare income statement for the month of May and June using (i) variable costing (ii) absorption costing (b) Prepare a reconciliation of profit or loss figures based on your answers in a(i) and (c)Describe a situation where net profit under variable…
XYZ Manufacturing production budget for April: 40,000 units Budgeted materials per unit: Direct material “A”: 2 gallons per unit @ $5.00 per gallon Direct material “B”: 6 lbs. per unit @ $8.00 per lb. Budgeted materials inventory: April 1 Direct material “A”: 5,000 gallons Direct material “B”: 8,000 lbs. April 30 Direct material “A”: 6,000 gallons Direct material “B”: 8,000 lbs. REQUIRED: Direct material “A” purchasing budget for the month of April in gallons and dollars: DM “A” _____________gallons DM “A” $__________________ Direct…
TB MC Qu. 8-176 (Algo) Caspion Corporation makes and sells... Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 8.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows: August September October November December 23,200 units 21,900 units 23,300 units 24,500 units 24,200 units The company wants to maintain monthly ending inventories of Jurision equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 11,400 kilograms of Jurislon were on hand. The cost of Jurislon is $24 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months. The total cost of Jurision to be purchased in August is: