Problem solving41A. Great Lakes Inc. makes and sells t-shirts. Each t-shirt uses 1.5 metres of fabric. Budgeted production of t-shirts in units for the nextfive months is as follows:MayJuneBudgeted production 32,000 28,000The company wants to maintain monthly ending inventories of fabric equal to 15% of the following month's budgeted productionneeds. The cost of fabric is $3.50 per metre. Prepare a direct materials purchases budget for the month of July.July August September26,000 24,000 22,00041B. Camping Out Co. manufactures down sleeping bags. Each sleeping bag requires 4 kilograms of down and takes .3 hours of directlabour. The standard cost of the down used by Camping Out is $8 per kilogram and the standard labour cost is $10 per hour. InNovember, Camping Out purchased 15,000 kilograms of down for $120,750. During the year, the company manufactured 4,000 sleepingbags. Payroll reported a total of 1,480 direct labour hours at a cost of $14,060.Instructionsa.b.Calculate the materials price and quantity variances and indicate whether the variances are favourable or unfavourable.Calculate the labour price and quantity variances and indicate whether the variances are favourable or unfavourable.

Lets understand the basics. Budget is prepared by the management in order to estimate future profit…

Problem solving 41A. Great Lakes Inc. makes and sells t-shirts. Each t-shirt uses 1.5 metres of fabric. Budgeted production of t-shirts in units for the nex five months is as follows: May June Budgeted production 32,000 28,000 July August September 26,000 24,000 22,000 The company wants to maintain monthly ending inventories of fabric equal to 15% of the following month's budgeted production needs. The cost of fabric is $3.50 per metre. Prepare a direct materials purchases budget for the month of July.

Problem solving 41A. Great Lakes Inc. makes and sells t-shirts. Each t-shirt uses 1.5 metres of fabric. Budgeted production of t-shirts in units for the nex five months is as follows: May June Budgeted production 32,000 28,000 July August September 26,000 24,000 22,000 The company wants to maintain monthly ending inventories of fabric equal to 15% of the following month's budgeted production needs. The cost of fabric is $3.50 per metre. Prepare a direct materials purchases budget for the month of July.

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 17E: Crescent Company produces stuffed toy animals; one of these is Arabeau the Cow. Each Arabeau takes...

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Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 285,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of 4.75. (There are no beginning or ending inventories of work in process.) Required: 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. 2. What if sales increased to 290,000 discs? How would that affect the ending finished goods inventory budget? Calculate the value of budgeted ending finished goods inventory.
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Lens & Shades sells sunglasses for $37 each and is estimating sales of 21,000 units in January and 19,000 in February. Each lens consist of 2.00 mm of plastic costing $2.50 per mm, 1.7 oz of dye costing $2.80 per ounce. and 0.50 hours direct labor at a labor rate of $18 per unit. Desired inventory levels are: Prepare a sales budget, production budget, direct materials budget for silicon and solution, and a direct labor budget.
Crescent Company produces stuffed toy animals; one of these is Arabeau the Cow. Each Arabeau takes 0.20 yard of fabric (white with irregular black splotches) and eight ounces of polyfiberfill. Fabric costs 3.50 per yard and polyfiberfill is 0.05 per ounce. Crescent has budgeted production of Arabeaus for the next four months as follows: Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 20 percent of the following months production needs and sufficient polyfiberfill be in inventory to satisfy 40 percent of the following months production needs. Inventory of fabric and polyfiberfill at the beginning of October equals exactly the amount needed to satisfy the inventory policy. Each Arabeau produced requires (on average) 0.10 direct labor hour. The average cost of direct labor is 15 per hour. Required: 1. Prepare a direct materials purchases budget of fabric for the last quarter of the year showing purchases in units and in dollars for each month and for the quarter in total. 2. Prepare a direct materials purchases budget of polyfiberfill for the last quarter of the year showing purchases in units and in dollars for each month and for the quarter in total. 3. Prepare a direct labor budget for the last quarter of the year showing the hours needed and the direct labor cost for each month and for the quarter in total.
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Shalom Company manufactures Product Peace. Each unit requires 3 kilos of raw material at a cost of P1.80 per kilo. The company's budget for second quarter and July production is shown below: April May June July Units 12,000 13,500 12,400 11,200 Starting April, Shalom wants to maintain several kilos of raw material as ending inventory equal to 15% of the following month's production needs. The company wanted to implement this since last quarter, there were instances of stockouts of raw materials. At the end of first quarter, only 3,000 kilos were available. Compute the cost of total purchases in quarter 2.
Shalom Company manufactures Product Peace. Each unit requires 3 kilos of raw material at a cost of P1.80 per kilo. The company's budget for second quarter and July production is shown below: Units April 12,000 June June May 13,500 12,400 July 11,200 Starting April, Shalom wants to maintain several kilos of raw material as ending inventory equal to 15% of the following month's production needs. The company wanted to implement this since last quarter, there were instances of stockouts of raw materials. At the end of first quarter, only 3,000 kilos were available. Amounts must be in whole numbers. Example: 88,000 or (88,000) Format of units/kilos: 88,000 KILOS (in whole numbers, one space after the number of units) Words must be in capital letters. Compute the ending inventory.
Jackson Inc. produces leather handbags. The production budget for the next four months is: July 5,300 units, August 7,700 units, September 8,400 units, October 8,100 units. Each handbag requires 0.5 square meters of leather. Jackson Inc.’s leather inventory policy is 30% of next month’s production needs. On July 1 leather inventory was expected to be 795 square meters. What will leather purchases be in July? Multiple Choice 2,760 square meters 4,035 square meters 3,010 square meters 3,160 square meters
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