Production and Purchases Budgets in Units At the end of business on June 30, 2009, the...

Production and Purchases Budgets in Units
At the end of business on June 30, 2009, the Wooly Rug Company had 100,000 square yards of rugs and 400,000 pounds of raw materials on hand. Budgeted sales for the third quarter of 2009 are:

Month	Sales
July	220,000 sq. yards
August	160,000 sq. yards
September	150,000 sq. yards
October	160,000 sq. yards

The Wooly Rug Company wants to have sufficient square yards of finished product on hand at the end of each month to meet 40 percent of the following month's budgeted sales and sufficient pounds of raw materials to meet 30 percent of the following month's production requirements. Five pounds of raw materials are required to produce one square yard of carpeting.

Prepare a production budget for the months of July, August, and September and a purchases budget in units for the months of July and August.

Wooly Rug Company Production Budget For the Months of July, August, & September, 2009
	July	August	September
Budgeted production - sq. yards	Answer	Answer	Answer

Wooly Rug Company Purchases Budget For the Months of July & August, 2009
	July	August
Purchases in pounds	Answer	Answer

Solutions

Expert Solution



		Wooly Rug Company
	Production Budget

			July	August	September		october
budgeted sales			220,000	160,000	150,000		160,000
add:ending inventory			64000	60000	64000
total needs			284,000	220,000	214,000
less:Beginning inventory			100,000	64,000	60,000
budgeted production -sq yards			184,000	156,000	154,000	answer



		Purchase budget
			July	August	September
budgeted production-sq yards			184,000	156,000	154,000
pounds required			5	5	5
total pounds required			920000	780000	770000
Add:Ending inventory			234000	231000
total pounds required			1154000	1011000
less:Beginning inventory			400,000	234,000
purchases in pounds			754,000	777,000	answer

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

Sienna Corporation is preparing budgets for the upcoming quarter ending June 30. Budgeted sales (in units)...

Sienna Corporation is preparing budgets for the upcoming quarter ending June 30. Budgeted sales (in units) for the next five months are: April 30,000 May 90,000 June 75,000 July 51,000 August 52,500 Below is additional information that may be relevant in preparing the budgets. The company produces professional quality bowls that sell for $31.50 per unit. To guard against inventory stockouts, the company has a policy of maintaining an ending inventory of 18 percent of the following month’s budgeted sales....

Materials June 1 Balance 27,300 June 30 Requisitions (A) June 30 Purchases 109,600 Work in Process...

Materials June 1 Balance 27,300 June 30 Requisitions (A) June 30 Purchases 109,600 Work in Process June 1 Balance (B) June 30 Completed jobs (F) June 30 Materials (C) June 30 Direct labor (D) June 30 Factory overhead applied (E) Finished Goods June 1 Balance 0 June 30 Cost of goods sold (G) June 30 Completed jobs (F) Wages Payable June 30 Wages incurred 120,000 Factory Overhead June 1 Balance 21,700 June 30 Factory overhead applied (E) June 30 Indirect...

XYZ company manufactures custom made bed and its year end is 30 June. The company purchases...

XYZ company manufactures custom made bed and its year end is 30 June. The company purchases its raw materials from a wide range of suppliers. Below is a description of XYZ's purchasing system. When production supervisors require raw materials, they complete a requisition form and this is submitted to the purchase ordering department. Requisition forms do not require authorisation and no reference is made to the current inventory levels of the materials being requested. Staff in th purchase ordering department...

Widget Production Ltd. has a fiscal year end of June 30. In February 20X1, the Company...

Widget Production Ltd. has a fiscal year end of June 30. In February 20X1, the Company borrowed $750,000 to fund an expansion. The Company paid $21,000 to obtain this financing. In January 20X2, the Company repaid $250,000 of the principal and in June 20X3, it repaid the remaining $500,000. All repayments were made from cash flow from operations. For tax purposes, which one of the following schedule of claims represents the most rapid method of claiming the costs of obtaining...

Question 6 (22 marks) Production Inc. has a year end date of June 30 and produces...

Question 6 Production Inc. has a year end date of June 30 and produces small electronic music parts. The company records depreciation to the nearest whole month in the year a capital assets is purchased. On March 20, 2016, they purchased and put into use a new production machine by spending the following amounts: Invoice price of the machinery (purchase terms 1/10, n30) - paid March 25 $190,000 Freight to have the machinery delivered to Production's facility 5：000 Duty upon...

Alliance Company’s budgets production of 20,000 units in January and 24,000 units in the February. Each...

Alliance Company’s budgets production of 20,000 units in January and 24,000 units in the February. Each finished unit requires 3 pounds of raw material K that costs $2.00 per pound. Each month’s ending raw materials inventory should equal 30% of the following month’s budgeted materials. The January 1 inventory for this material is 18,000 pounds. What is the budgeted materials cost for January? Flannigan Company manufactures and sells a single product that sells for $650 per unit; variable costs are...

Sales, production, purchases, and cash budgets Freese, Inc., is in the process of preparing the fourth...

Sales, production, purchases, and cash budgets Freese, Inc., is in the process of preparing the fourth quarter budget for 2013, and the following data have been assembled: Problem 14.23 LO 4, 5, 8 The company sells a single product at a price of $60 per unit. The estimated sales volume for the next six months is as follows: September ................................................................13,000 units October .....................................................................12,000 units November...................................................................14,000 units December...................................................................20,000 units January........................................................................9,000 units February.....................................................................10,000 units All sales are on account. The company's collection...

Sales, production purchases, and cash budgets Freese, Inc., is in the process of preparing the fourth...

Sales, production purchases, and cash budgets Freese, Inc., is in the process of preparing the fourth quarter budget for 2013, and the following data have been assembled: • The company sells a single product at a price of $60 per unit. The estimated sales volume for the next six months is as follows: Problem 14.24 LO 4, 5, 8 September. ..................................13,000 units October. ..................................12,000 units November. ..................................14,000 units December. ..................................20,000 units January. ..................................9,000 units February. ..................................10,000 uhits All sales are...

Your client is Hobartcorp Ltd, a diversified business operating throughout Australia. Year-end was 30 June 2016,...

Your client is Hobartcorp Ltd, a diversified business operating throughout Australia. Year-end was 30 June 2016, the auditor’s report was signed on 31 July 2016 and the financial statements were mailed to shareholders on 14 August 2016. During your subsequent events review, you noted the following independent and material items: 1. Hobartcorp has been involved in a legal dispute with a competitor for a number of years. The dispute relates to alleged breaches of copyright by Hobartcorp. On 27 July,...

Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,000 cushions and 12,500...

Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,000 cushions and 12,500 pounds of raw materials on hand. Budgeted sales for the next three months are: Month Sales October 10,000 cushions November 12,000 cushions December 15,000 cushions Comfy Cushions wants to have sufficient raw materials on hand at the end of each month to meet 25 percent of the following month's production requirements and sufficient cushions on hand at the end of each month to meet...

Subjects