We purchase, bottle, and sell perfume in 6 ounce bottles. We have budgeted to sell 9,000 bottles at $65 per bottle during December. There were 860 bottles of perfume ready to sell to customers at the beginning of the month. We had 1,300 ounces of perfume in our direct materials inventory that cost us $7 per ounce last month. Our target ending inventories for finished goods and for direct materials are 120% of our beginning inventories due to seasonal issues. We expect the cost of our direct materials to increase to $8 per ounce for this month. In proper formats, prepare the following budgets for month ended 12/31. Explicitly state all of your units. Round all rates to 2 decimal places. Round all total dollar amounts to 0 decimal places. Use underlines and double-underlines properly. Be neat! Revenue Budget Production Budget a. b. C. getwollat dimana. Direct Materials Usage and Purchases Budgets in $ and in units

We purchase, bottle, and sell perfume in 6 ounce bottles. We have budgeted to sell 9,000 bottles at $65 per bottle during December. There were 860 bottles of perfume ready to sell to customers at the beginning of the month. We had 1,300 ounces of perfume in our direct materials inventory that cost us $7 per ounce last month. Our target ending inventories for finished goods and for direct materials are 120% of our beginning inventories due to seasonal issues. We expect the cost of our direct materials to increase to $8 per ounce for this month. In proper formats, prepare the following budgets for month ended 12/31. Explicitly state all of your units. Round all rates to 2 decimal places. Round all total dollar amounts to 0 decimal places. Use underlines and double-underlines properly. Be neat! Revenue Budget Production Budget a. b. C. getwollat dimana. Direct Materials Usage and Purchases Budgets in $ and in units

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...

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Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.
Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The companys policy is to have enough material on hand to equal 10% of the next months production needs and to maintain a finished goods inventory equal to 25% of the next months production needs. What is the budgeted cost of purchases for March?
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.
jeremy inc. produces leather handbags. The production budget for the next four months is:July 5000 units, August 7300, September 7500, October 8800. Eachhandbag requires 0.5 square meters of leather. Jeremy inc's leather inventory policy is 30 percent of next month's production needs. If the leather policy is met, what will the july 1 inventory be?750.0 square meters1095.0 square meters1825.0 square meters300.0 square meters
Jackson Inc. produces leather handbags. The production budget for the next four months is: July 5,100 units, August 7,800 units, September 8,400 units, October 8,700 units. Each handbag requires 0.4 square meters of leather. Jackson Inc.’s leather inventory policy is 40% of next month’s production needs. On July 1 leather inventory was expected to be 816 square meters. Leather is expected to cost $8.00 per square meter in June, but go up to $9.00 per square meter in July. What is the expected cost of leather purchases in July? $20,748 $22,248 $23,248 $23,148
Crane, Inc. makes and sells a single product, buckets. It takes 20 ounces of plastic to make one bucket. Budgeted production of buckets for the next three months is as follows: August 85000 units, September 70000 units, October 60000 units. The company wants to maintain monthly ending inventories of plastic equal to 10% of the following month's production needs. On August 31, 190000 ounces of plastic were on hand. The cost of plastic is $0.02 per gram. How much is the ending inventory of plastic to be reported on the company’s balance sheet at September 30? $2400 $120000 $7000 $2800
Sit-Down Ltd manufactures chairs. Each chair requires 425 grams of plastic costing $0.34 per 10 grams. Sit-Down uses the plastic to cover the chairs. Sit-Down has budgeted production of chairs for the next four months as follows: Units March 3, 500 April 4,400 May 4,900 June 6,300 Inventory policy requires that sufficent plastic be in ending monthly inventory to satisfy 20 percent of the following month's production needs. The inventory of plastic at the beginning of March equals exactly the amount needed to satisfy the inventory policy. The ending inventory (grams) for March is 374,000 297,500 535,500 416,500
D’Lightful Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months of the year are as follows: Month Sales October 10,000 November 14,000 December 13,000 Finished goods inventoryat the end of September was 3,000 units. Ending finished goods inventory is budgeted to equal 25 percent of the next month's sales. The company expects to sell the lamps for $25 each. January 2018 sales is projectedat 16,000 lamps. What is the expected revenue for the three months from October to December? Question 17 options: 1) $250,000 2) $925,000 3) $325,000 4) $343,750
Jaybird Inc. produces leather handbags. The sales budget for the next four months is: July 5,500 units, August 7,400, September 8,200, October 8,200. Jaybird Inc.'s ending finished goods inventory policy is 10% of the following month's sales. Each handbag requires 1.9 hours of unskilled labor (paid $10 per hour) and 2.2 hours of skilled labor (paid $20 per hour). How much is total labor cost during the three months July through September? Multiple Choice $1,346,310 $87,617 $814,660 $1,333,290
Sunrise Poles manufactures hiking poles and is planning on producing 3,624 units in March and 2,954 in April. Each pole requires a half pound of material, which costs $1.23 per pound. The company’s policy is to have enough material on hand to equal 5% of the next month’s production needs and to maintain a finished goods inventory equal to 22% of the next month’s production needs. What is the budgeted cost of purchases for March? Round to the nearest penny, two decimal places.
Mackinac Inc. produces denim backpacks. The production budget for the next four months is: July 5,500 units, August 7,700 units, September 7,700 units, October 8,100 units. Each backpack requires 0.6 square meters of denim. Mackinac Inc.’s denim inventory policy is 30% of next month’s production needs. On July 1 leather inventory was expected to be 990 square meters. Denim is expected to cost $5.00 per square meter in June, but go up to $6.00 per square meter in July. What is the expected cost of denim purchases in July? Multiple Choice $23,076 $23,176 $22,176 $20,676
Wadi Aseeb Company produces curtains. The production budget in units for the next five months is: May 10,000 units, June 14,000, July 15,000, August 16,000, and September 18,000 units. Each curtain requires 5 meters of cotton fabric. The company's cotton fabric inventory policy for ending inventory is 40% of next month's production needs. On May 1 the cotton fabric in stock was 20,000 meters. How much of the cotton fabric needs to be purchased ?for May in meters 84,000 .a .None of the given answers .b O 77,000 .c O 72,000 d O 58,000 .e O