Question
In: Accounting
Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending...
Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.
| Beginning Inventory | Ending Inventory | |
|---|---|---|
| Finished goods (units) | 27,000 | 77,000 |
| Raw material (grams) | 57,000 | 47,000 |
Each unit of finished goods requires 2 grams of raw material. The company plans to sell 620,000 units during the year.
How much of the raw material should the company purchase during the year?
Solutions
Expert Solution
| Answer | |||
| Raw material to be purchased = 1,330,000 grams OR 1330 kilograms (kgs) | |||
| Budgeted finished goods sale unit | 620,000 | units | |
| Budgeted finished goods ending inventory | 77,000 | units | |
| Budgeted finished goods beginning invetory | - 27,000 | units | |
| A | Budgeted finished goods production | 670,000 | units |
| B | Raw material per unit | 2 | grams |
| C= A x B | Total requirement of raw material | 1,340,000 | grams |
| D | Ending Inventory of raw material | 47,000 | grams |
| E | Beginning Inventory of raw material | - 57,000 | grams |
| F=C+D-E | Raw material to be purchased | 1,330,000 | grams |
ekkarill92 answered 1 year agoRelated Solutions
Freewheel is in the process of preparing its master budget for the six months ending December...
Freewheel is in the process of preparing its master budget for
the six months ending December 19X2. The balance sheet for the year
ended 30 June 19X2 is estimated to be as follows: Cost Deprec prov
NBV
Fixed assets 140.000 14.000 126.000
Current assets
Stock 25.000
Trade debtors 24.600
Bank 3.000
Net current liabilities 52.600
Creditors Amount falling due within one year
Trade creditors 25.000
Other creditors 9.000
34.000
Net current assets 18.600
Total assets less current liabilities 144.600
Capital...
Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending...
Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year.
Beginning Inventory
Ending Inventory
Raw material*
56,000
66,000
Finished goods
96,000
66,000
*Three pounds of raw material are needed to produce each unit of finished product.
If Paradise Corporation plans to sell 560,000 units during next year, the number of units it would have to manufacture during the year would be:
504,000 units...
The Hammerly Corporation is preparing its master budget for the quarter ending March 31. It sells...
The Hammerly Corporation is preparing its master budget for the
quarter ending March 31. It sells a single product for $25 a unit.
Budgeted sales are 40% cash and 60% on credit. All credit sales are
collected in the month following the sales. Budgeted unit sales as
provided by Regional Vice Presidents of Sales across the United
States for the next four months follow:
Key Facts
January
February
March
April
Sales in units ……………….
1,200
1,000
1,600
1,400
At December...
Walsh Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $18,000....
Walsh Corporation is preparing its cash budget for January. The
budgeted beginning cash balance is $18,000. Budgeted cash receipts
total $183,000 and budgeted cash disbursements total $188,000. The
desired ending cash balance is $30,000. The excess (deficiency) of
cash available over disbursements for January is: Select one: a.
23,000 b. $13,000 c. $201,000 d. ($5,000)
Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $18,900....
Bries Corporation is preparing its cash budget for January. The
budgeted beginning cash balance is $18,900. Budgeted cash receipts
total $187,500 and budgeted cash disbursements total $189,800. The
desired ending cash balance is $30,900.
To attain its desired ending cash balance for January, the
company should borrow:
Multiple Choice
$30,900
$47,500
$14,300
$0
Sarafiny Corporation is in the process of preparing its annual
budget. The following beginning and ending inventory levels are
planned for the year.
Beginning Inventory
Ending Inventory...
Keener Company budgets on an annual basis for its fiscal year. The following beginning and ending...
Keener Company budgets on an annual basis for its fiscal year.
The following beginning and ending inventory levels (in units) are
planned for the fiscal year of July 1, 2020 through June 30,
2021.
July 1 2020
June 30 2021
Raw material
40,000
10,000
Work-in process
8,000
8,000
finished goods
30,000
5,000
Three (3) units of raw material are needed to produce each unit
of finished product.
If 450,000 finished units were to be manufactured during the
2020-2021 fiscal year...
Discuss the process of preparing a budget
Discuss the process of preparing a budget
Evergreen Corporation is preparing the master budget for the third quarter ending March 31, 2009. It sells...
Evergreen Corporation is preparing the master budget for the
third quarter ending March 31, 2009. It sells a single
product for $20 a unit. Sales are 25% cash and 75%
credit. The credit sales are collected 30% in the month
of the sale and the remaining 70% is collected in the next
month. No credit sales occurred in December 2008. The
December 31 inventory of finished goods is 15,000 units and
projected sales are 20,000, 55000, 65,000, 75,000, and 85,000 units
for the first months...
Evergreen Corporation is preparing the master budget for the third quarter ending March 31, 2009. It sells...
Evergreen Corporation is preparing the master budget for the
third quarter ending March 31, 2009. It sells a single
product for $20 a unit. Sales are 25% cash and 75%
credit. The credit sales are collected 30% in the month
of the sale and the remaining 70% is collected in the next
month. No credit sales occurred in December 2008. The
December 31 inventory of finished goods is 15,000 units and
projected sales are 20,000, 55000, 65,000, 75,000, and 85,000 units
for the first months...
Evergreen Corporation is preparing the master budget for the third quarter ending March 31, 2009. It sells...
Evergreen Corporation is preparing the master budget for the
third quarter ending March 31, 2009. It sells a single
product for $20 a unit. Sales are 25% cash and 75%
credit. The credit sales are collected 30% in the month
of the sale and the remaining 70% is collected in the next
month. No credit sales occurred in December 2008. The
December 31 inventory of finished goods is 15,000 units and
projected sales are 20,000, 55000, 65,000, 75,000, and 85,000 units
for the first months...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Why is it important that, in countries with high inflation, financial statements be adjusted for inflation?...
- I need some guidance on question 1c. (1) (A) Between 2001 and 2011, the real (2018...
- Apply each of the 3 main sociological theories to poverty and how would a theorist from...
- Write a program that prints a custom conversion table from Celsius temperatures to Fahrenheit and Newton...
- Discuss the steps needed to determine the requirements and strategies to install, configure, and manage DNS...
- I need this code to be written in Python: Given a dataset, D, which consists of...
- Explain how financial status impacts marital stability. What other factors are associated with a couple’s financial...
ADVERTISEMENT