Question
In: Accounting
Preparing a Direct Materials Purchases Budget Tulum Inc. makes a Mexican chocolate mix sold in 4-pound...
Preparing a Direct Materials Purchases Budget
Tulum Inc. makes a Mexican chocolate mix sold in 4-pound boxes. Planned production in units for the first 3 months of the coming year is:
| January | 24,700 |
| February | 22,000 |
| March | 30,200 |
Each box requires 4.2 pounds of chocolate mix and one box. Company policy requires that ending inventories of raw materials for each month be 10% of the next month’s production needs. That policy was met for the ending inventory of December in the prior year. The cost of 1 pound of chocolate mix is $1.50. The cost of one box is $0.10.
Required:
1. Calculate the ending inventory of chocolate mix in pounds for December of the prior year and for January and February. What is the beginning inventory of chocolate mix for January?
| Ending inventory for December | fill in the blank 1791c200405a046_1 pounds |
| Ending inventory for January | fill in the blank 1791c200405a046_2 pounds |
| Ending inventory for February | fill in the blank 1791c200405a046_3 pounds |
| Beginning inventory for January | fill in the blank 1791c200405a046_4 pounds |
2. Prepare a direct materials purchases budget for chocolate mix for the months of January and February.
| Tulum Inc. | ||
| Direct Materials Purchases Budget - Chocolate mix in Pounds: | ||
| For the Months of January and February | ||
| January | February | |
| Production in units | fill in the blank f5189304407200e_1 | fill in the blank f5189304407200e_2 |
| Pounds per unit | fill in the blank f5189304407200e_3 | fill in the blank f5189304407200e_4 |
| Pounds for production | fill in the blank f5189304407200e_5 | fill in the blank f5189304407200e_6 |
| Desired ending inventory | fill in the blank f5189304407200e_7 | fill in the blank f5189304407200e_8 |
| Needed | fill in the blank f5189304407200e_9 | fill in the blank f5189304407200e_10 |
| Less: Beginning inventory | fill in the blank f5189304407200e_11 | fill in the blank f5189304407200e_12 |
| Purchases | fill in the blank f5189304407200e_13 | fill in the blank f5189304407200e_14 |
| Price per pounds | $fill in the blank f5189304407200e_15 | $fill in the blank f5189304407200e_16 |
| Dollar purchases | $fill in the blank f5189304407200e_17 | $fill in the blank f5189304407200e_18 |
3. Calculate the ending inventory of boxes for December of the prior year and for January and February. Round your answers to the nearest whole unit.
| Ending inventory for December | fill in the blank feb385003fcbfb9_1 units |
| Ending inventory for January | fill in the blank feb385003fcbfb9_2 units |
| Ending inventory for February | fill in the blank feb385003fcbfb9_3 units |
4. Prepare a direct materials purchases budget for boxes for the months of January and February.
| Tulum Inc. | ||
| Direct Materials Purchases Budget - Boxes | ||
| For the Months of January and February | ||
| January | February | |
| Production in units | fill in the blank 1d53d301c01306a_1 | fill in the blank 1d53d301c01306a_2 |
| Boxes per unit | fill in the blank 1d53d301c01306a_3 | fill in the blank 1d53d301c01306a_4 |
| Boxes for production | fill in the blank 1d53d301c01306a_5 | fill in the blank 1d53d301c01306a_6 |
| Desired ending inventory | fill in the blank 1d53d301c01306a_7 | fill in the blank 1d53d301c01306a_8 |
| Needed | fill in the blank 1d53d301c01306a_9 | fill in the blank 1d53d301c01306a_10 |
| Less: Beginning inventory | fill in the blank 1d53d301c01306a_11 | fill in the blank 1d53d301c01306a_12 |
| Purchases | fill in the blank 1d53d301c01306a_13 | fill in the blank 1d53d301c01306a_14 |
| Price per box | $fill in the blank 1d53d301c01306a_15 | $fill in the blank 1d53d301c01306a_16 |
| Dollar purchases | $fill in the blank 1d53d301c01306a_17 | $fill in the blank 1d53d301c01306a_18 |
Solutions
Expert Solution
1.
| Particulars | Dec Last Year | Jan | Feb |
| Ending Inventory | 10374 | 9240 | 12600 |
| Beginning Inventory | 10374 |
2
| Direct Material Purchase Budget - Chocolate Mix | ||||
| Particulars | Dec Last Year | Jan | Feb | Mar |
| Production in Units | 0 | 24700 | 22000 | 30000 |
| Pounds per Unit | 4.2 | 4.2 | 4.2 | 4.2 |
| Pounds for Production | 0 | 103740 | 92400 | 126000 |
| Desired Ending inventory needed | 10374 | 9240 | 12600 | 0 |
| Less Beginning Inventory | 0 | 10374 | 9240 | 12600 |
| Purchases | 10374 | 102606 | 95760 | 113400 |
| Price in Pounds | $1.50 | $1.50 | $1.50 | $1.50 |
| Dollars Purchase | $15,561 | $1,53,909 | $1,43,640 | $1,70,100 |
3.
| Particulars | Dec Last Year | Jan | Feb |
| Ending Inventory | 2470 | 2200 | 3000 |
4.
| Direct Material Purchase Budget - Box | ||||
| Particulars | Dec Last Year | Jan | Feb | Mar |
| Production in Units | 0 | 24700 | 22000 | 30000 |
| Boxes per unit | 1 | 1 | 1 | 1 |
| Boxes for production | 0 | 24700 | 22000 | 30000 |
| Desired Ending inventory needed | 2470 | 2200 | 3000 | 0 |
| Less Beginning Inventory | 0 | 2470 | 2200 | 3000 |
| Purchases | 2470 | 24430 | 22800 | 27000 |
| Price per box | $0.10 | $0.10 | $0.10 | $0.10 |
| Dollars Purchase | $247 | $2,443 | $2,280 | $2,700 |
ekkarill92 answered 6 months agoRelated Solutions
Preparing a Direct Materials Purchases Budget Patrick Inc. makes industrial solvents sold in five-gallon drums. Planned...
Preparing a Direct Materials Purchases Budget
Patrick Inc. makes industrial solvents sold in five-gallon
drums. Planned production in units for the first three months of
the coming year is:
January
40,000
February
50,000
March
65,000
Each drum requires 6 gallons of chemicals and one plastic drum.
Company policy requires that ending inventories of raw materials
for each month be 20% of the next month's production needs. That
policy was met for the ending inventory of December in the prior
year....
When preparing a direct materials budget, the required purchases of raw materials in units equals...
When preparing a direct materials budget, the required purchases of raw materials in units equals
Multiple Choice
raw materials needed to meet the production schedule+ desired ending inventory of raw materials -beginning inventory of raw materials.
raw materials needed to meet the production schedule - desired ending inventory of raw materials inventory of raw materials beginning
raw materials needed to meet the production schedule - desired ending inventory of raw materials beginning inventory of raw materials.
raw materials needed...
Calculating the Direct Materials Mix Variance Mangia Pizza Company makes frozen pizzas that are sold through...
Calculating the Direct Materials Mix Variance
Mangia Pizza Company makes frozen pizzas that are sold through
grocery stores. Mangia developed the following standard mix for
spreading on premade pizza shells to produce 16 giant-size sausage
pizzas.
Direct Material
Mix
Mix Proportion
SP
Standard Cost
Tomato sauce
16.00 lbs
0.320
$1.50
$24.00
Cheese
18.50
0.370
2.80
51.80
Sausage
15.50
0.310
2.10
32.55
Total
50.00 lbs
$108.35
Mangia put a batch of 2,000 pounds of direct materials (enough
for 640 frozen sausage...
Direct Materials Purchases Budget A). Lorenzo’s Frozen Pizza Inc. has determined from its production budget the...
Direct Materials Purchases Budget
A). Lorenzo’s Frozen Pizza Inc. has determined from its
production budget the following estimated production volumes for
12'' and 16'' frozen pizzas for September:
Units
12" Pizza
16" Pizza
Budgeted production volume
16,000
25,500
Three direct materials are used in producing the two types of
pizza. The quantities of direct materials expected to be used for
each pizza are as follows:
12" Pizza
16" Pizza
Direct materials:
Dough
0.80
lb. per unit
1.50
lbs. per unit...
Direct materials purchases budget Tobin’s Frozen Pizza Inc. has determined from its production budget the following...
Direct materials purchases budget
Tobin’s Frozen Pizza Inc. has determined from its production
budget the following estimated production volumes for 12'' and 16''
frozen pizzas for November:
Units
12" Pizza
16" Pizza
Budgeted production volume
61,000
41,000
There are three direct materials used in producing the two types
of pizza. The quantities of direct materials expected to be used
for each pizza are as follows:
12" Pizza
16" Pizza
Direct materials:
Dough
0.55
lb. per unit
0.80
lbs. per unit...
Direct Materials Purchases Budget Romano’s Frozen Pizza Inc. has determined from its production budget the following...
Direct Materials Purchases Budget
Romano’s Frozen Pizza Inc. has determined from its production
budget the following estimated production volumes for 12'' and 16''
frozen pizzas for September:
Units
12" Pizza
16" Pizza
Budgeted production volume
13,100
21,100
There are three direct materials used in producing the two types
of pizza. The quantities of direct materials expected to be used
for each pizza are as follows:
12" Pizza
16" Pizza
Direct materials:
Dough
0.90
lb. per unit
1.50
lbs. per unit...
Direct Materials Purchases Budget Romano’s Frozen Pizza Inc. has determined from its production budget the following...
Direct Materials Purchases Budget
Romano’s Frozen Pizza Inc. has determined from its production
budget the following estimated production volumes for 12'' and 16''
frozen pizzas for September:
Units
12" Pizza
16" Pizza
Budgeted production volume
16,600
24,800
There are three direct materials used in producing the two types
of pizza. The quantities of direct materials expected to be used
for each pizza are as follows:
12" Pizza
16" Pizza
Direct materials:
Dough
0.90
lb. per unit
1.50
lbs. per unit...
#2 Direct Materials Purchases Budget Romano’s Frozen Pizza Inc. has determined from its production budget the...
#2
Direct Materials Purchases Budget
Romano’s Frozen Pizza Inc. has determined from its production
budget the following estimated production volumes for 12'' and 16''
frozen pizzas for September:
Units
12"
Pizza
16"
Pizza
Budgeted production
volume
15,300
21,700
There are three direct materials used in producing the two types
of pizza. The quantities of direct materials expected to be used
for each pizza are as follows:
12"
Pizza
16"
Pizza
Direct
materials:
Dough
0.90
lb. per unit
1.50
lbs. per...
Direct Materials Purchases Budget Romano’s Frozen Pizza Inc. has determined from its production budget the following...
Direct Materials Purchases Budget
Romano’s Frozen Pizza Inc. has determined from its production
budget the following estimated production volumes for 12'' and 16''
frozen pizzas for September:
Units
12" Pizza
16" Pizza
Budgeted production volume
13,600
22,100
There are three direct materials used in producing the two types
of pizza. The quantities of direct materials expected to be used
for each pizza are as follows:
12" Pizza
16" Pizza
Direct materials:
Dough
0.90
lb. per unit
1.50
lbs. per unit...
Direct Materials Purchases Budget Marino's Frozen Pizza Inc. has determined from its production budget the following...
Direct Materials Purchases Budget
Marino's Frozen Pizza Inc. has determined from its production
budget the following estimated production volumes for 12'' and 16''
frozen pizzas for June 2016:
Units
12" Pizza
16" Pizza
Budgeted production volume
14,100
20,500
There are three direct materials used in producing the two types
of pizza. The quantities of direct materials expected to be used
for each pizza are as follows:
12" Pizza
16" Pizza
Direct materials:
Dough
0.90
lb. per unit
1.50
lbs. per...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- * What is the link between SOX compliance and law and information systems security? ** Why...
- A chemist has a substance which was either phenol or resorcinol. He puts the substance in...
- I need new and unique answers, please. (Use your own words, don't copy and paste), Please...
- Discuss system hardening strategies and techniques including updates and patches, default logon/passwords, anonymous access, removal of...
- What types of stories do you enjoy? Why are stories important?
- Read the privacy policy of a large, popular website. Write a brief summary. Identify the site...
- When σ is unknown and the sample is of size n ≥ 30, there are two...
ADVERTISEMENT