The Tiger Jungle Company produces two different styles of jeans, Waking Life and Slacker Life. The company's sales budget estimates that 420,000 of the Waking Life jeans and 239,000 of the Slacker Life jeans will be sold during the year. The company begins with 15,500 pairs of Waking Life and 11,500 pairs of Slacker Life. The company desires ending inventory of 17,000 of Waking Life and 8,500 of Slacker Life. Prepare a production budget for the year. TIGER JUNGLE COMPANY Production Budget For the Year Ending December 31, 20Y9 Waking Life Slacker Life Expected to be Plus inventory Total Less inventory Total to be

The Tiger Jungle Company produces two different styles of jeans, Waking Life and Slacker Life. The company's sales budget estimates that 420,000 of the Waking Life jeans and 239,000 of the Slacker Life jeans will be sold during the year. The company begins with 15,500 pairs of Waking Life and 11,500 pairs of Slacker Life. The company desires ending inventory of 17,000 of Waking Life and 8,500 of Slacker Life. Prepare a production budget for the year. TIGER JUNGLE COMPANY Production Budget For the Year Ending December 31, 20Y9 Waking Life Slacker Life Expected to be Plus inventory Total Less inventory Total to be

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 5EA: Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700...

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Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs $3.00 per yard. The companys policy is to have enough material on hand to equal 15% of next months production needs and to maintain a finished goods inventory equal to 20% of the next months production needs. What is the budgeted cost of purchases for March?
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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Shadee Corporation expects to sell 590 sun shades in May and 360 in June. Each shade sells for $136. Shadee’s beginning and ending finished goods inventories for May are 80 and 45 shades, respectively. Ending finished goods inventory for June will be 50 shades. Required: Prepare Shadee’s sales budget for May and June. Prepare Shadee’s production budget for May and June.
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