Question
In: Accounting
Arnold Co. budgeted to sell 11,500 units of Gizmo in September. Production of one unit of...
Arnold Co. budgeted to sell 11,500 units of Gizmo in September.
Production of one unit of Gizmo requires two (2) pounds of aluminum
and four (4) pounds of steel powder. The beginning inventory and
the desired ending inventory are as follows:
|
Beginning Inventory |
Desired Ending Inventory |
||||
|
Gizmo |
2,400 |
units |
3,300 |
units |
|
|
Aluminum |
1,500 |
pounds |
1,700 |
pounds |
|
|
Steel powder |
1,300 |
pounds |
1,000 |
pounds |
|
a) Production budget: How many units of Gizmo should Arnold plan to
make in September?
b) Direct materials production budget, Aluminum and Steel Powder: Ignore your answer in (a). If Arnold plans to manufacture 15,000 units of Gizmo in September, how much Aluminum and how much Steel powder in pounds only does Arnold need for production in September?
c) Direct materials purchases budget, Aluminum: How many pounds of Aluminum does Arnold Co. need to purchase during September if Arnold plans to manufacture 15,000 units of Gizmo in September?
Solutions
Expert Solution
| Answer : A Production Budget | |
| Arnold Company | |
| Production Budget September | |
| Gizmo | |
| Particulars | Units |
| Budgeted Sales (A) | 11500 |
| Desired Ending Inventory (B) | 3300 |
| Total Units Required C= (A+B) | 14800 |
| Beginning Inventory (D) | 2400 |
| Units To be Produced C-D | 12400 |
| Answer : b If Company plans to produce 12400 units of Gizmo | ||
| Direct Materials Purchase Budget | ||
| Arnold Company | ||
| Purchase Budget September | ||
| Aluminum | ||
| Particulars | Pounds | |
| Required to Manufacture Gizmo (12400X2) | 24800 | |
| Desired Ending Inventory (B) | 1700 | |
| Total Units Required C= (A+B) | 26500 | |
| Beginning Inventory (D) | 1500 | |
| Units To be Purchased C-D | 25000 | |
| Arnold Company | ||
| Purchase Budget September | ||
| Steel powder | ||
| Particulars | Pounds | |
| Required to Manufacture Gizmon (12400X4) | 49600 | |
| Desired Ending Inventory (B) | 1000 | |
| Total Units Required C= (A+B) | 50600 | |
| Beginning Inventory (D) | 1300 | |
| Units To be Purchased C-D | 49300 | |
| b) Direct Material Needed to produce 15000 units of Gizmo | ||
| Arnold Company | ||
| Direct Material Needed to produce 15000 units of Gizmo | ||
| Particulars | Pounds | Pounds |
| Required to Manufacture Gizmo | 30000 | 60000 |
| Answer : (C) If Company plans to produce 15000 units of Gizmo | |
| Direct Materials Purchase Budget | |
| Arnold Company | |
| Purchase Budget September | |
| Aluminum | |
| Particulars | Pounds |
| Required to Manufacture Gizmo (15000X2) | 30000 |
| Desired Ending Inventory (B) | 1700 |
| Total Units Required C= (A+B) | 31700 |
| Beginning Inventory (D) | 1500 |
| Units To be Purchased C-D | 30200 |
| Arnold Company | |
| Purchase Budget September | |
| Steel powder | |
| Particulars | Pounds |
| Required to Manufacture Gizmo (15000X4) | 60000 |
| Desired Ending Inventory (B) | 1000 |
| Total Units Required C= (A+B) | 61000 |
| Beginning Inventory (D) | 1300 |
| Units To be Purchased C-D | 59700 |
"If you still have any query let me know through comment"
"Good Luck STAY SAFE"
"IF THIS IS HELPFUL PLEASE RATE POSITIVE"
ekkarill92 answered 2 years agoRelated Solutions
Box Company budgeted to sell 226,000 units of Zbox in September. Production of one unit of Zbox requires three pounds of aluminum and five pounds of steel powder.
Box Company budgeted to sell 226,000 units of Zbox in September. Production of one unit of Zbox requires three pounds of aluminum and five pounds of steel powder. The beginning inventory and the desired ending inventory are as follows: Beginning InventoryDesired Ending InventoryZbox37,000units26,000unitsAluminum43,000pounds36,000poundsSteel powder39,000pounds44,000pounds How many pounds of steel powder does Box Company need to purchase during September if Box plans to manufacture 163,000 units of Zbox in September?
Zhender Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in...
Zhender Inc. manufactures hair brushes that sell at wholesale
for $2.60 per unit. Budgeted production in both 2018 and 2019 was
3,800 units. There was no beginning inventory in 2018. The
following data summarized the 2018 and 2019 operations:
2018
2019
Units sold
2,900
4,000
Units produced
3,800
3,800
Costs:
Variable factory overhead per unit
$
0.55
$
0.65
Fixed factory overhead
$
1,710
$
1,710
Variable marketing per unit
$
0.75
$
1.00
Fixed Selling and Administrative
$
650...
HairNeat Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in...
HairNeat Inc. manufactures hair brushes that sell at wholesale
for $2.60 per unit. Budgeted production in both 2016 and 2017 was
3,000 units. There was no beginning inventory in 2016. The
following data summarized the 2016 and 2017 operations:
2016
2017
Units sold
2,500
3,200
Units produced
3,000
3,000
Costs:
Variable manufacturing costs per unit
$0.65
$0.65
Fixed factory overhead
$1,290
$1,290
Variable marketing per unit
$0.80
$0.80
Fixed Selling and Administrative
$650
$650
Absorption costing operating income for 2017...
Zhender Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in...
Zhender Inc. manufactures hair brushes that sell at wholesale
for $2.60 per unit. Budgeted production in both 2015 and 2016 was
3,000 units. There was no beginning inventory in 2015. The
following data summarized the 2015 and 2016 operations: 2015 2016
Units sold 2,500 3,200 Units produced 3,000 3,000 Costs: Variable
factory overhead per unit $0.65 $0.65 Fixed factory overhead $1,290
$1,290 Variable marketing per unit $0.80 $0.80 Fixed Selling and
Administrative $650 $650 Variable costing operating income for 2016...
What is the budgeted production (in units) for 20Y6?
Daybook Inc. projected sales of 400,000 personal journals for 20Y6. The estimated January 1, 20Y6, inventory is 20,000 units, and the desired December 31, 20Y6, inventory is 23,500 units. What is the budgeted production (in units) for 20Y6?
Jannusch Corporation makes one product. Budgeted unit sales for July, August, September, and October are 10,000,...
Jannusch Corporation makes one product. Budgeted unit sales for July, August, September, and October are 10,000, 11,600, 13,300, and 12,700 units, respectively. The ending finished goods inventory should equal 20% of the following month's sales. The budgeted required production for August is closest to:
A) 11,600 units
B) 11,940 units
C) 14,260 units
D) 16,580 units
LL company budgeted 100,000 units for production during 2019. The following cost per unit information is...
LL company budgeted 100,000 units for production during 2019.
The following cost per unit information is available: direct
material = $5, direct labour = $10, variable manufacturing overhead
= $4, variable selling per unit= $2. LL sells at $50 market
price.
It received a special order for 10,000 units from a new customer
in a country in which LL has never done business. This customer has
offered special order price at $22 per unit. If LL accepts the
order, there...
1.Blue Wave Co. predicts the following unit sales for the coming four months: September, 3,900 units;...
1.Blue Wave Co. predicts the following unit sales for the coming
four months: September, 3,900 units; October, 4,900 units;
November, 6,900 units; and December, 8,200 units. The company’s
policy is to maintain finished goods inventory equal to 60% of the
next month’s sales. At the end of August, the company had 2,700
finished units on hand.
Prepare a production budget for each of the months of September,
October, and November.
2.asper Company has sales on account and for cash. Specifically,...
The following data are given for Harry Company: Budgeted production 1,056 units Actual production 900 units...
The following data are given for Harry Company:
Budgeted production
1,056 units
Actual production
900 units
Materials:
Standard price per ounce
$1.758
Standard ounces per completed unit
11
Actual ounces purchased and used in
production
10,197
Actual price paid for materials
$20,904
Labor:
Standard hourly labor rate
$14.09 per hour
Standard hours allowed per completed
unit
4.4
Actual labor hours worked
4,635
Actual total labor costs
$75,319
Overhead:
Actual and budgeted fixed overhead
$1,054,000
Standard variable overhead rate
$24.00 per...
The following data are given for Stringer Company: Budgeted production 959 units Actual production 1,063 units...
The following data are given for Stringer Company:
Budgeted production
959 units
Actual production
1,063 units
Materials:
Standard price per ounce
$1.9
Standard ounces per completed unit
10
Actual ounces purchased and used in
production
10,949
Actual price paid for materials
$22,445
Labor:
Standard hourly labor rate
$14.96 per hour
Standard hours allowed per completed
unit
4.6
Actual labor hours worked
5,474.45
Actual total labor costs
$83,485
Overhead:
Actual and budgeted fixed overhead
$1,186,000
Standard variable overhead rate
$27.00 per...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- From 1965 to present, feminism sought to critique mainstream American society in order to challenge proscribed...
- For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional...
- Paymaster Enterprises has arranged to finance its seasonal working-capital needs with a short-term bank loan. The...
- TOWS matrix of WOW MOMO
- Write an anecdotal lead with a person focus from the following information; include a nut graph....
- Step 1 Picture yourself as a Senior Product Manager in your favorite industry. This could be...
- Gauss Jordan elimination using python for a 2d list (3x3) without using any library. Thanks
ADVERTISEMENT