You are provided with the following information for Keon Company, You are asked to assist in tne budget-setting process. Production budget for January, February and March 2,000 units per month Production budget for April, May and June (and July) 1,800 units per month Production standard-direct material 4.5 kilograms per unit Direct material inventory standard-percentage of closing inventory to next month's production DM required for current month per kilogram 70% Direct material standard cost $25.00 Direct material purchase paid in month of purchase 40% of total purchase amount Direct material purchase paid in following month 60% of total purchase amount Direct material purchases in December 8,000 kilograms 10,000 kilograms Expected 31 December inventory (a) Prepare the direct materials purchase budget in kilograms of material for January to June for Keon Company. Ignore non-round amounts and simply showw the nearest whole number for all values

You are provided with the following information for Keon Company, You are asked to assist in tne budget-setting process. Production budget for January, February and March 2,000 units per month Production budget for April, May and June (and July) 1,800 units per month Production standard-direct material 4.5 kilograms per unit Direct material inventory standard-percentage of closing inventory to next month's production DM required for current month per kilogram 70% Direct material standard cost $25.00 Direct material purchase paid in month of purchase 40% of total purchase amount Direct material purchase paid in following month 60% of total purchase amount Direct material purchases in December 8,000 kilograms 10,000 kilograms Expected 31 December inventory (a) Prepare the direct materials purchase budget in kilograms of material for January to June for Keon Company. Ignore non-round amounts and simply showw the nearest whole number for all values

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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Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Company policy requires that ending inventories for each month be 25 percent of next months sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.
Pilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: Pilsner typically pays 25% on account in the month of billing and 75% the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?
The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be 20,000 units. Additional information follows: Materials used in production: Prepare the following: a. A production budget for March (in units). b. A direct materials budget for the month (in units and dollars).
You are provided with the following information for Keon Company. You are asked to assist " ahe budget-setting process. Production budget for January, February and March 2,000 units per month Production budget for April, May and June (and July) 1,800 units per month Production standard-direct material 4.5 kilograms per unit Direct material inventory standard-percentage of closing inventory to next month's production DM required for current month per kilogram 70% Direct material standard cost $25.00 Direct material purchase paid in month of purchase 40% of total purchase amount Direct material purchase paid in following month 60% of total purchase amount Direct material purchases in December 8,000 kilograms 10,000 kilograms Expected 31 December inventory (a) Prepare the direct materials purchase budget in kilograms of material for January to June for Keon Company. Ignore non-round amounts and simply show the nearest whole number for all values. (b) Prepare the direct materials payment…
The production department of Hareston Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:1st Quarter 2nd Quarter 3rd Quarter 4th QuarterUnits to be produced ........................... 7,000 8,000 6,000 5,000In addition, the beginning raw materials inventory for the first quarter is budgeted to be 1,400 pounds andthe beginning accounts payable for the first quarter is budgeted to be $2,940.Each unit requires 2 pounds of raw material that costs $1.40 per pound. Management desires to endeach quarter with an inventory of raw materials equal to 10% of the following quarter’s production needs.The desired ending inventory for the fourth quarter is 1,500 pounds. Management plans to pay for 80%of raw material purchases in the quarter acquired and 20% in the following quarter. Each unit requires0.60 direct labor-hours and direct labor-hour workers are paid $14.00 per hour.Required:1. Prepare the company’s direct materials budget and…
The following information relates to a company that produces a single product. Esch unit requires four pounds of material. Inventory requirements are es follows: a. The finished goods inventory on hand at the end of each month must be equal to 8,000 units plus 28% of the next month's sales. The finished goods inventory on December 31 is budgeted based on this requirement. b.The raw materials inventory on hand at the end of esch month must be equal to one- half of the following month's production needs for raw materials. The row materials inventory on December 31 is budgeted based on this requirement. c. The company maintains no work in process inventories. A sales budget for the company for the first and second quarters of the upcoming year follows. Budgeted Sales in Units 43,000 53,000 73,000 38,000 23,000 13,000 January February Morch April May June Required: 1. Prepare a production budget for the upcoming year for the months of January. February, March and April. Production Budget…
Hester Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for the fiscal year of July 1, 2004 through June 30, 2005. July 1, 2004 June 30, 2005 40,000 10,000 8,000 8,000 Finished goods 30,000 5,000 1 Three (3) units of raw material are needed to produce each unit of finished product. Answer: Raw material¹ Work-in-process If Hester Company plans to sell 500,000 units during the 2004-2005 fiscal year, the number of units it would have to manufacture during the year would be
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Use the information provided below to calculate the number of units of Product Tex that must beproduced for July and August.INFORMATIONThe estimated sales volume of Product Tex is 25 000 units for June, 21 000 units for July, 30 000 units for Augustand 36 000 units for September. The policy of management is to maintain an ending finished goods inventory eachmonth equal to 20% of the current month’s budgeted sales and 30% of the following month’s budgeted sales.
The following information is located in the production department of Mindy Ca Second First Quarter 14,300 Quarter Third Quarter Fourth Quarter 21,000 22,500 21,300 Units produced Other information found in the production department includes: Prior Year Ending RM Inventory Prior Year Ending A/P Pounds of RM per unit The ending raw material inventory per month should be 25% of the following month's production needs. The desired ending inventory for the fourth quarter is 3,700 pounds. Management plans to pay for 70% of the raw material purchases in the month bought and 30% in the following month. Direct Materials Budget Question: Given the data, the second quarter direct materials budget should be: Costs of Raw Materials per pound 5. $ Cost of DM Purchased: 10,725 11,775 First Second Quarter Quarter Third Quarter Fourth Quarter $ 4.50 $ 4.50 $ 4.50 $ 4.50
Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year 20x1. Five units of raw material are required to produce each unit of finished product. Raw material Work in process Finished goods January 1 December 31 36,000 17,000 98,000 51,000 17,000 62,000 Required: 1. If Bodin Company plans to sell 472,000 units during the year, compute the number of units the firm would have to manufacture during the year. 2. If 509,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be purchased. 1. Required production in units 2. Raw material purchases in units cBook Pro 6) U G K C V. N
Production Budget Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Unit Sales Dollar Sales July 30,000 $985,000 August 34,000 1,062,800 September 38,000 1,200,000 October 37,000 1,142,100 Company policy requires that ending inventories for each month be 25 percent of next month's sales. At the beginr July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced e month as well as for the quarter in total. Palmgren Company Production Budget For the Third Quarter July August September Total Unit sales 30,000 V 34,000 V 38,000 V 102,000 Desired ending inventory 8,500 9,500 V 9,250 V 27,250 X Total needed 38,500 43,500 47,250 V 129,250 X Less: Beginning inventory 7,500 V 8,500 V 9,500 V 25,500 X