The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Units to be produced | 11,000 | 14,000 | 13,000 | 12,000 |
In addition, 11,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $6,000.
Each unit requires 4 grams of raw material that costs $1.60 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 6,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor-hours and direct laborers are paid $12.50 per hour.
Required:
1.&2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole.
3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.
4. Calculate the estimated direct labor cost for each quarter and for the year as a whole.
In: Accounting
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 15,000 18,000 17,000 16,000 In addition, 30,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $6,800. Each unit requires 8 grams of raw material that costs $1.60 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 6,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor-hours and direct laborers are paid $11.50 per hour. Required: 1.&2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole. 3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole. 4. Calculate the estimated direct labor cost for each quarter and for the
In: Accounting
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Units to be produced | 7,000 | 10,000 | 9,000 | 8,000 |
In addition, 8,750 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $5,200.
Each unit requires 5 grams of raw material that costs $1.60 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 6,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor-hours and direct laborers are paid $13.50 per hour.
Required:
1.&2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole.
3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.
4. Calculate the estimated direct labor cost for each quarter and for the year as a whole.
In: Accounting
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Units to be produced | 18,000 | 21,000 | 20,000 | 19,000 |
In addition, 27,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $7,400.
Each unit requires 6 grams of raw material that costs $1.40 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 7,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.40 direct labor-hours and direct laborers are paid $14.50 per hour.
Required:
1.&2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole.
3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.
4. Calculate the estimated direct labor cost for each quarter and for the year as a whole.
In: Accounting
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Units to be produced | 18,000 | 21,000 | 20,000 | 19,000 |
In addition, 27,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $7,400.
Each unit requires 6 grams of raw material that costs $1.40 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 7,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.40 direct labor-hours and direct laborers are paid $14.50 per hour.
Required:
1.&2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole.
3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.
4. Calculate the estimated direct labor cost for each quarter and for the year as a whole.
In: Accounting
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Units to be produced | 21,000 | 24,000 | 23,000 | 22,000 |
In addition, 21,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $8,000.
Each unit requires 4 grams of raw material that costs $1.20 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 8,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor-hours and direct laborers are paid $12.50 per hour.
Required:
1.&2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole.
3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.
4. Calculate the estimated direct labor cost for each quarter and for the year as a whole.
In: Accounting
1. Amazon Appliance Company has three installers. Larry earns $355 per week, Curly earns $460 per week, and Moe earns $585 per week. The company's SUTA rate is 5.4%, and the FUTA rate is 6.0% minus the SUTA. As usual, these taxes are paid on the first $7,000 of each employee's earnings.
a. How much SUTA and FUTA tax does Amazon owe for the first quarter of the year?
SUTA: $
FUTA: $
b. How much SUTA and FUTA tax does Amazon owe for the second quarter of the year?
SUTA: $
FUTA: $
2.
As the payroll manager for Stargate Industries, your task is to complete the following weekly payroll record. The company pays overtime for all hours worked over 40 at the rate of time-and-a-half. Round to the nearest cent when necessary.
Employee |
M |
T |
W |
T |
F |
S |
S |
Hourly Rate |
Total Hours |
Overtime Hours |
Regular Pay |
Overtime Pay |
Total Pay |
| Sands | 6 | 5 | 9 | 8 | 10 | 7 | 0 | $9.50 | $ | $ | $ |
In: Advanced Math
Blue Eagle Media just bought a new ropes course. To pay for the ropes course, the company took out a loan that requires Blue Eagle Media to pay the bank a special payment of 6,700 dollars in 2 month(s) and also pay the bank regular payments. The first regular payment is expected to be 1,440 dollars in 1 month and all subsequent regular payments are expected to increase by 0.2 percent per month forever. The interest rate on the loan is 1.36 percent per month. What was the price of the ropes course?
Raj has an investment worth 171,638 dollars. The investment will make a special payment of X to Raj in 3 quarters in addition to making regular quarterly payments to Raj forever. The first regular quarterly payment to Raj is expected to be 3,600 dollars and will be made in 3 months. All subsequent regular quarterly payments are expected to increase by 0.54 percent per quarter forever. The expected return for the investment is 2.83 percent per quarter. What is X, the amount of the special payment that will be made to Raj in 3 quarters?
In: Finance
Peanut Land Inc. produces all-natural organic peanut butter. The peanut butter is sold in 12-ounce jars. The sales budget for the first four months of the year is as follows: Unit Sales Dollar Sales ($) January 70,000 147,000 February 65,000 136,500 March 60,000 126,000 April 62,000 130,200 Company policy requires that ending inventories for each month be 10% of next month's sales. At the beginning of January, the inventory of peanut butter is 31,000 jars. Each jar of peanut butter needs two raw materials: 24 ounces of peanuts and one jar. Company policy requires that ending inventories of raw materials for each month be 20% of the next month's production needs. That policy was met on January 1. Required: 1. Prepare a production budget for the first quarter of the year. Show the number of jars that should be produced each month as well as for the quarter in total. 2. Prepare a direct materials purchases budget for jars for the months of January and February. Prepare a direct materials purchases budget for peanuts for the months of January and February.
In: Accounting
Lowell Company makes and sells artistic frames for pictures. The
controller is responsible for preparing the master budget and has
accumulated the following information for 2017.
|
January |
February |
March |
April |
May |
||||||
| Estimated unit sales | 10,300 | 11,400 | 8,200 | 8,100 | 8,700 | |||||
| Sales price per unit | $50.80 | $48.20 | $48.20 | $48.20 | $48.20 | |||||
| Direct labor hours per unit | 2.1 | 2.1 | 1.7 | 1.7 | 1.7 | |||||
| Wage per direct labor hour | $8.00 | $8.00 | $8.00 | $9.00 | $9.00 |
Lowell has a labor contract that calls for a wage increase to $9.00
per hour on April 1. New labor-saving machinery has been installed
and will be fully operational by March 1.
Lowell expects to begin the year with 17,140 frames on hand and has
a policy of carrying an end-of-month inventory of 100% of the
following month’s sales, plus 60% of the second following month’s
sales.
A) Prepare a production budget for Lowell Company by month and for the first quarter of the year.
B) Prepare a direct labor budget for Lowell company by month and for the first quarter of the year
In: Accounting