Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:
a. The finished goods inventory on hand at the end of each month must be equal to 2,000 units of Supermix plus 20% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 10,600 units.
b. The raw materials inventory on hand at the end of each month must be equal to one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 62,000 cc of solvent H300.
c. The company maintains no work in process inventories.
A sales budget for Supermix for the last six months of the year follows.
| Budgeted Sales in Units |
|
| July | 43,000 |
| August | 48,000 |
| September | 58,000 |
| October | 38,000 |
| November | 28,000 |
| December | 18,000 |
Required:
1. Prepare a production budget for Supermix for the months July, August, September, and October.
3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.
In: Accounting
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:
The finished goods inventory on hand at the end of each month must equal 2,000 units of Supermix plus 25% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 17,250 units.
The raw materials inventory on hand at the end of each month must equal one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 93,375 cc of solvent H300.
The company maintains no work in process inventories.
A monthly sales budget for Supermix for the third and fourth quarters of the year follows.
| Budgeted Unit Sales | |
| July | 61,000 |
| August | 66,000 |
| September | 76,000 |
| October | 56,000 |
| November | 46,000 |
| December | 36,000 |
Required:
1. Prepare a production budget for Supermix for the months July, August, September, and October.
3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.
In: Accounting
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:
The finished goods inventory on hand at the end of each month must equal 3,000 units of Supermix plus 20% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 17,200 units.
The raw materials inventory on hand at the end of each month must equal one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 108,000 cc of solvent H300.
The company maintains no work in process inventories.
A monthly sales budget for Supermix for the third and fourth quarters of the year follows.
| Budgeted Unit Sales | |
| July | 71,000 |
| August | 76,000 |
| September | 86,000 |
| October | 66,000 |
| November | 56,000 |
| December | 46,000 |
Required:
1. Prepare a production budget for Supermix for the months July, August, September, and October.
3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.
In: Accounting
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:
The finished goods inventory on hand at the end of each month must equal 3,000 units of Supermix plus 20% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 12,400 units.
The raw materials inventory on hand at the end of each month must equal one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 72,000 cc of solvent H300.
The company maintains no work in process inventories.
A monthly sales budget for Supermix for the third and fourth quarters of the year follows.
| Budgeted Unit Sales | |
| July | 47,000 |
| August | 52,000 |
| September | 62,000 |
| October | 42,000 |
| November | 32,000 |
| December | 22,000 |
Required:
1. Prepare a production budget for Supermix for the months July, August, September, and October.
3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.
In: Accounting
|
Daisy Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. |
|
Three cubic centimetres (cc) of solvent Q80 are required to manufacture each unit of Fineclay, one of the company’s products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Fineclay occur. To keep production and sales moving smoothly, the company has the following inventory requirements: |
| a. |
The finished goods inventory on hand at the end of each month must be equal to 3,150 units of Fineclay plus 20% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 10,500 units. |
| b. |
The raw materials inventory on hand at the end of each month must be equal to one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 56,700 cc of solvent Q80. |
| c. | The company maintains no work-in-process inventories. |
| A sales budget for Fineclay for the last six months of the year follows: |
|
Budgeted Sales in Units |
|||
| July | 36,750 | ||
| August | 42,000 | ||
| September | 52,500 | ||
| October | 31,500 | ||
| November | 21,000 | ||
| December | 10,500 | ||
| Required: | |
| 1. | Prepare a production budget for Fineclay for the months of July to October. |
| 2. | Not available in Connect. |
| 3. |
Prepare a budget showing the quantity of solvent Q80 to be purchased for July, August, and September, and for the quarter in total. |
In: Accounting
I need to calculate the variable costs, DLH, Fixed costs and the manufacturing overhead rate per direct labor hour for each quarter and year-end. I've done some calculation but I believe I am missing something in the variable costs calculations with the indirect materials, indirect labor hours and maintenance. I have been multiplying the indirect costs by DLH, but some of my instructions indicate I am supposed to divide it. Not sure if I am misinterpreting or just missing a calculation altogether.
Wells Company is preparing its Master Budget for 2016 and Evan has asked you to create the Manufacturing Overhead Budget for the Sporting Goods Division. Once you have reviewed the Project resources and the below data, prepare the Manufacturing Overhead Budget for 2017, showing quarterly data. Be sure to properly express each figure in terms of units, dollars or direct labor hours (DLH).
Sporting Goods Units to be produced (by Quarter):
Q1: 70,000
Q2: 60,000
Q3: 50,000
Q4: 80,000
Direct labor: 1 hour of direct labor is required to produce one unit
Variable overhead costs per direct labor hour:
|
Indirect materials |
$0.80 |
|
Indirect labor |
$1.20 |
|
Maintenance |
$0.50 |
Fixed overhead costs per Quarter:
|
Supervisory salaries |
$42,000 |
|
Depreciation |
$16,000 |
|
Maintenance |
$12,000 |
In: Accounting
|
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: |
| a. |
The finished goods inventory on hand at the end of each month must be equal to 3,000 units of Supermix plus 20% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 10,000 units. |
| b. |
The raw materials inventory on hand at the end of each month must be equal to one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 54,000 cc of solvent H300. |
| c. | The company maintains no work in process inventories. |
| A sales budget for Supermix for the last six months of the year follows. |
| Budgeted
Sales in Units |
|
| July | 35,000 |
| August | 40,000 |
| September | 50,000 |
| October | 30,000 |
| November | 20,000 |
| December | 10,000 |
| Required: | |
| 1. |
Prepare a production budget for Supermix for the months July, August, September, and October. |
| 3. |
Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total. |
In: Accounting
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:
The finished goods inventory on hand at the end of each month must equal 3,000 units of Supermix plus 20% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 12,400 units.
The raw materials inventory on hand at the end of each month must equal one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 72,000 cc of solvent H300.
The company maintains no work in process inventories.
A monthly sales budget for Supermix for the third and fourth quarters of the year follows.
| Budgeted Unit Sales | |
| July | 47,000 |
| August | 52,000 |
| September | 62,000 |
| October | 42,000 |
| November | 32,000 |
| December | 22,000 |
Required:
1. Prepare a production budget for Supermix for the months July, August, September, and October.
3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.
In: Accounting
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:
The finished goods inventory on hand at the end of each month must equal 2,000 units of Supermix plus 20% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 13,000 units.
The raw materials inventory on hand at the end of each month must equal one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 84,000 cc of solvent H300.
The company maintains no work in process inventories.
A monthly sales budget for Supermix for the third and fourth quarters of the year follows.
| Budgeted Unit Sales | |
| July | 55,000 |
| August | 60,000 |
| September | 70,000 |
| October | 50,000 |
| November | 40,000 |
| December | 30,000 |
Required:
1. Prepare a production budget for Supermix for the months July, August, September, and October.
3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.
In: Accounting
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: The finished goods inventory on hand at the end of each month must equal 2,000 units of Supermix plus 25% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 14,250 units. The raw materials inventory on hand at the end of each month must equal one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 75,375 cc of solvent H300. The company maintains no work in process inventories. A monthly sales budget for Supermix for the third and fourth quarters of the year follows. Budgeted Unit Sales July 49,000 August 54,000 September 64,000 October 44,000 November 34,000 December 24,000 Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October. 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.
In: Accounting