Explain in detail. Gold, Inc. makes and sells a single product, bricks. Three pounds of mortar are needed to make one brick. Budgeted production of bricks for the next fewmonths follows:25,000 units31,000 unitsSeptemberOctoberThe company wants to maintain monthly ending inventories of mortar equal to 20% of the following month's production needs. How much mortar should bepurchased in September?O 1.90,000O 2.71,400O 3.75,000O 4.93,600O 5.78,600

Gold, Inc. makes and sells a single product, bricks. Three pounds of mortar are needed to make one brick. Budgeted production of bricks for the next fev months follows: September October 25,000 units 31,000 units The company wants to maintain monthly ending inventories of mortar equal to 20% of the following month's production needs. How much mortar should be purchased in September?

Gold, Inc. makes and sells a single product, bricks. Three pounds of mortar are needed to make one brick. Budgeted production of bricks for the next fev months follows: September October 25,000 units 31,000 units The company wants to maintain monthly ending inventories of mortar equal to 20% of the following month's production needs. How much mortar should be purchased in September?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 5EA: Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700...

See similar textbooks

Similar questions

Each unit requires direct labor of 4.1 hours. The labor rate is $13.75 per hour and next years production is estimated at 75,000 units. What is the amount to be included in next years direct labor budget?
Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The companys policy is to have enough material on hand to equal 10% of the next months production needs and to maintain a finished goods inventory equal to 25% of the next months production needs. What is the budgeted cost of purchases for March?
Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 285,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of 4.75. (There are no beginning or ending inventories of work in process.) Required: 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. 2. What if sales increased to 290,000 discs? How would that affect the ending finished goods inventory budget? Calculate the value of budgeted ending finished goods inventory.
Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs $3.00 per yard. The companys policy is to have enough material on hand to equal 15% of next months production needs and to maintain a finished goods inventory equal to 20% of the next months production needs. What is the budgeted cost of purchases for March?
Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.
A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000
One Device makes universal remote controls and expects to sell 500 units in January, 800 in February, 450 in March, 550 in April, and 600 in May. The required ending inventory is 20% of the next months sales. Prepare a production budget for the first four months of the year.
Crane, Inc. makes and sells a single product, buckets. It takes 20 ounces of plastic to make one bucket. Budgeted production of buckets for the next three months is as follows: August 85000 units, September 70000 units, October 60000 units. The company wants to maintain monthly ending inventories of plastic equal to 10% of the following month's production needs. On August 31, 190000 ounces of plastic were on hand. The cost of plastic is $0.02 per gram. How much is the ending inventory of plastic to be reported on the company’s balance sheet at September 30? $2400 $120000 $7000 $2800
Angelo Limited is preparing its budget for the next year. It produces and sells a single product. The expected sales for the first 4 months of next year are: Month January February March April Production units 10,500 12,700 14,200 16,100 The product requires 2.5 kg of Material A1 per unit. It is the company’s policy to hold in inventory at the end of a month 20% of the material requirement for the following month. Calculate the material purchases for the month of February based on the information provided. Production cost is: The total overhead cost incurred in producing products. The total of the direct costs and the production overhead cost incurred. The total of the direct costs incurred in production. The cost of direct material, direct labour and indirect labour incurred in production.
Tucker Inc. makes dog treats. The material to be purchased from the production budget is as follows: April May JuneMaterial to be purchased 161,800 270,900 195,600 Tucker Inc. pays $0.40 per kilo for its material. 60% of a months purchases are paid for in th month of purchase, 40% is paid for in the following month. The March 31 accounts payable balance is $10,000 and will be paid in full in the first month. The total cash disbursement for April is ____________ The total cash disbursement for May is ____________ The total cash disbursement for June is ____________ The total cash disbursement for the quarter is____________
Tucker Inc. needs 5kg of meat to make its dog treats per unit of product. Management wants materials on hand at the end of each month equal to 10% of the following month's production On March 31, 13,000 kg of material are on hand. Material cost is $0.40 per kg How much raw material needs to be purchased in April given the following production budget April May June July Production 26,000 46, 000 29, 000 101, 000 13, 000 140,000 153, 000 26,000
D’Lightful Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months of the year are as follows: Month Sales October 10,000 November 14,000 December 13,000 Finished goods inventoryat the end of September was 3,000 units. Ending finished goods inventory is budgeted to equal 25 percent of the next month's sales. The company expects to sell the lamps for $25 each. January 2018 sales is projectedat 16,000 lamps. What is the expected revenue for the three months from October to December? Question 17 options: 1) $250,000 2) $925,000 3) $325,000 4) $343,750