Question

In: Accounting

LearnCo Sales Budget For the Year Ending December 31, 20Y2 Product Unit Sales Volume Unit Selling...

LearnCo
Sales Budget
For the Year Ending December 31, 20Y2

Product
Unit Sales
Volume
Unit Selling
Price
Total
Sales
Basic Abacus 36000 $7 $252,000
Deluxe Abacus 36000 13 468,000
Totals 72,000 - $720,000
LearnCo
Production Budget
For the Year Ending December 31, 20Y2
Units Basic Units Deluxe
Expected units to be sold (from Sales Budget) 36000 36000
Desired ending inventory, December 31, 20Y2 1,000 3,000
Total units available 37000 39000
Estimated beginning inventory, January 1, 20Y2 (1,050) (2,100)
Total units to be produced 35950 36900

The direct materials purchases budget should be integrated with the production budget to ensure that production is not interrupted during the year.

Before you make any changes to the budget, you review the information on the following Direct Materials Data Table and enter the units to be produced from the Production Budget. After scanning the direct materials purchases budget (which follows the Direct Materials Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Materials Data Table, or from the sales budget and production budget you prepared. When required, round your answers to the nearest dollar.

Direct Materials Data Table
Wood Pieces Beads
Packages required per unit:
  Basic abacus 1 2
  Deluxe abacus 2 3
Cost per package:
  Wood pieces $0.20
  Beads $0.20
Units to be produced (from Production Budget):
  Basic abacus
  Deluxe abacus
LearnCo
Direct Materials Purchases Budget
For the Year Ending December 31, 20Y2
Direct Materials
Wood Pieces Beads Total
Packages required for production:
  Basic abacus
  Deluxe abacus
Desired inventory, December 31, 20Y2 2,200 5,000
Total packages available
Estimated inventory, January 1, 20Y2 (3,500) (4,500)
Total packages to be purchased
Unit price (per package) × $ × $
Total direct materials to be purchased $ $ $58,310

Solutions

Expert Solution

  • Requirements asked

Direct Materials Data Table

Wood Pieces

Beads

Packages required per unit:

  Basic abacus

1

2

  Deluxe abacus

2

3

Cost per package:

  Wood pieces

$0.20

$0.20

  Beads

$0.20

$0.20

Units to be produced (from Production Budget):

  Basic abacus

           35,950

                  35,950

  Deluxe abacus

           36,900

                  36,900

LearnCo

Direct Materials Purchases Budget

For the Year Ending December 31, 20Y2

Direct Materials

Wood Pieces

Beads

Total

Packages required for production:

  Basic abacus

           35,950

                  71,900

  Deluxe abacus

           73,800

               110,700

Desired inventory, December 31, 20Y2

              2,200

                    5,000

Total packages available

         111,950

               187,600

Estimated inventory, January 1, 20Y2

           (3,500)

                  (4,500)

Total packages to be purchased

         108,450

               183,100

Unit price (per package)

$0.20

$0.20

Total direct materials to be purchased

$21,690

$36,620

$58,310


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