Homework Help is Here – Start Your Trial Now!
Business
Accounting
Crest Products expects the following sales of its single product September October Units 26,800 19,700 16,100 18,700 16,000 November December January Required: Crest has an ending finished goods Inventory policy of 30% of the next month's sales needs. September 1 Inventory is projected to be 7,400 units. Each finished unit requires 2 units of Component X and 3 units of Component Z. August 1 materials inventory includes 3,000 units of Component X and 159,000 units of Component Z. Crest desires to maintain a Component X Inventory equal to 10% of next month's production needs and a Component Z Inventory equal to 20% of next month's production needs. a. Prepare a production budget for Crest for the quarter ending December 31. Budgeted unit sales Plus: Ending finished goods inventory Less: Beginning finished goods inventory Budgeted production (units) Crest Products Production Budget For the Quarter Ending December 31 October November Budgeted production (units) Direct materials requirements per unit Total direct material needed Plus Ending inventory Less: Beginning inventory b. Prepare a direct materials purchases budget for Component Z for quarter ending December 31. Assume a desired ending inventory for Component Z of 14,000 units at December 31, and a constant unit cost of $4 per lb. December Crest Products Direct Materials Purchases Budget (Component Z) For the Quarter Ending December 31 October November Total purchases of Component Z Cost of Component Z Budgeted cost of Component Z purchases Total December (11,172) (10,128) (10,734) $ Total 14,000 11,172 651,992

Crest Products expects the following sales of its single product September October Units 26,800 19,700 16,100 18,700 16,000 November December January Required: Crest has an ending finished goods Inventory policy of 30% of the next month's sales needs. September 1 Inventory is projected to be 7,400 units. Each finished unit requires 2 units of Component X and 3 units of Component Z. August 1 materials inventory includes 3,000 units of Component X and 159,000 units of Component Z. Crest desires to maintain a Component X Inventory equal to 10% of next month's production needs and a Component Z Inventory equal to 20% of next month's production needs. a. Prepare a production budget for Crest for the quarter ending December 31. Budgeted unit sales Plus: Ending finished goods inventory Less: Beginning finished goods inventory Budgeted production (units) Crest Products Production Budget For the Quarter Ending December 31 October November Budgeted production (units) Direct materials requirements per unit Total direct material needed Plus Ending inventory Less: Beginning inventory b. Prepare a direct materials purchases budget for Component Z for quarter ending December 31. Assume a desired ending inventory for Component Z of 14,000 units at December 31, and a constant unit cost of $4 per lb. December Crest Products Direct Materials Purchases Budget (Component Z) For the Quarter Ending December 31 October November Total purchases of Component Z Cost of Component Z Budgeted cost of Component Z purchases Total December (11,172) (10,128) (10,734) $ Total 14,000 11,172 651,992

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...
See similar textbooks
icon
Related questions
Question
Crest Products expects the following sales of its single product Units September October November December January Required: Crest has an ending finished goods Inventory policy of 30% of the next month's sales needs. September 1 Inventory is projected to be 7,400 units. Each finished unit requires 2 units of Component X and 3 units of Component Z. August 1 materials Inventory includes 3,000 units of Component X and 159,000 units of Component Z. Crest desires to maintain a Component X Inventory equal to 10% of next month's production needs and a Component Z Inventory equal to 20% of next month's production needs. a. Prepare a production budget for Crest for the quarter ending December 31. 26,800 19,700 16,100 18,700 16,000 Crest Products Production Budget For the Quarter Ending December 31 October November Budgeted unit sales Plus: Ending finished goods inventory Less: Beginning finished goods inventory Budgeted production (units) Budgeted production (units) Direct materials requirements per unit Total direct material needed Plus Ending inventory Less: Beginning inventory b. Prepare a direct materials purchases budget for Component Z for quarter ending December 31. Assume a desired ending Inventory for Component Z of 14,000 units at December 31, and a constant unit cost of $4 per lb. Crest Products Direct Materials Purchases Budget (Component Z) For the Quarter Ending December 31 October November December Total purchases of Component Z Cost of Component Z Budgeted cost of Component Z purchases (11,172) (10,128) Total December (10,734) $ Total 14,000 11,172 651,992
Transcribed Image Text:Crest Products expects the following sales of its single product Units September October November December January Required: Crest has an ending finished goods Inventory policy of 30% of the next month's sales needs. September 1 Inventory is projected to be 7,400 units. Each finished unit requires 2 units of Component X and 3 units of Component Z. August 1 materials Inventory includes 3,000 units of Component X and 159,000 units of Component Z. Crest desires to maintain a Component X Inventory equal to 10% of next month's production needs and a Component Z Inventory equal to 20% of next month's production needs. a. Prepare a production budget for Crest for the quarter ending December 31. 26,800 19,700 16,100 18,700 16,000 Crest Products Production Budget For the Quarter Ending December 31 October November Budgeted unit sales Plus: Ending finished goods inventory Less: Beginning finished goods inventory Budgeted production (units) Budgeted production (units) Direct materials requirements per unit Total direct material needed Plus Ending inventory Less: Beginning inventory b. Prepare a direct materials purchases budget for Component Z for quarter ending December 31. Assume a desired ending Inventory for Component Z of 14,000 units at December 31, and a constant unit cost of $4 per lb. Crest Products Direct Materials Purchases Budget (Component Z) For the Quarter Ending December 31 October November December Total purchases of Component Z Cost of Component Z Budgeted cost of Component Z purchases (11,172) (10,128) Total December (10,734) $ Total 14,000 11,172 651,992
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS