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Karam Inc. has compiled the following data in order to put together its first quarter operating budget for the year: February March 31,000 38,000 January 35,000 Sales (units) Each unit requires three hours of direct labor. Additional information: Karam sells each unit for $95. Company policy is to have 30 percent of next month's sales (in units) in ending finished goods inventory. This policy was met in December. Company policy is to have 40 percent of next month's production needs in ending raw materials inventory. The production needs for April are 95,500. This policy was met in December. It takes three pounds of material to produce each unit, and the cost is $2.75 per pound. April 29,000 A. Prepare a sales budget for January, February and March and for the first quarter in total. Karam Inc. Sales Budget For the Quarter Ended March 31, 20XX Line Item Description January February March Sales in units Unit selling price Budgeted sales Total

Karam Inc. has compiled the following data in order to put together its first quarter operating budget for the year: February March 31,000 38,000 January 35,000 Sales (units) Each unit requires three hours of direct labor. Additional information: Karam sells each unit for $95. Company policy is to have 30 percent of next month's sales (in units) in ending finished goods inventory. This policy was met in December. Company policy is to have 40 percent of next month's production needs in ending raw materials inventory. The production needs for April are 95,500. This policy was met in December. It takes three pounds of material to produce each unit, and the cost is $2.75 per pound. April 29,000 A. Prepare a sales budget for January, February and March and for the first quarter in total. Karam Inc. Sales Budget For the Quarter Ended March 31, 20XX Line Item Description January February March Sales in units Unit selling price Budgeted sales Total

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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B. Prepare a production budget for January, February and March and for the first quarter in total. Karam Inc. Production Budget For the Quarter Ended March 31, 20XX Line Item Description January February March Sales in units (given) Desired ending inventory Total needs Less: Beginning inventory Units to be produced C. Prepare a direct materials purchases budget for January, February and March and for the first quarter in total. Karam Inc. Direct Materials Purchases Budget For the Quarter Ended March 31, 20XX Line Item Description Units to be produced Direct materials per unit Production needs Desired ending inventory Total needs Less: Beginning inventory Direct materials to be purchased Cost per pound Total purchase cost Total January February March $ Total
Transcribed Image Text:B. Prepare a production budget for January, February and March and for the first quarter in total. Karam Inc. Production Budget For the Quarter Ended March 31, 20XX Line Item Description January February March Sales in units (given) Desired ending inventory Total needs Less: Beginning inventory Units to be produced C. Prepare a direct materials purchases budget for January, February and March and for the first quarter in total. Karam Inc. Direct Materials Purchases Budget For the Quarter Ended March 31, 20XX Line Item Description Units to be produced Direct materials per unit Production needs Desired ending inventory Total needs Less: Beginning inventory Direct materials to be purchased Cost per pound Total purchase cost Total January February March $ Total
Karam Inc. has compiled the following data in order to put together its first quarter operating budget for the year: February March 31,000 38,000 January 35,000 Sales (units) Each unit requires three hours of direct labor. Additional information: Karam sells each unit for $95. Company policy is to have 30 percent of next month's sales (in units) in ending finished goods inventory. This policy was met in December. Company policy is to have 40 percent of next month's production needs in ending raw materials inventory. The production needs for April are 95,500. This policy was met in December. It takes three pounds of material to produce each unit, and the cost is $2.75 per pound. A. Prepare a sales budget for January, February and March and for the first quarter in total. Karam Inc. Sales Budget For the Quarter Ended March 31, 20XX Line Item Description January February March Sales in units Unit selling price Budgeted sales April 29,000 Total 8888
Transcribed Image Text:Karam Inc. has compiled the following data in order to put together its first quarter operating budget for the year: February March 31,000 38,000 January 35,000 Sales (units) Each unit requires three hours of direct labor. Additional information: Karam sells each unit for $95. Company policy is to have 30 percent of next month's sales (in units) in ending finished goods inventory. This policy was met in December. Company policy is to have 40 percent of next month's production needs in ending raw materials inventory. The production needs for April are 95,500. This policy was met in December. It takes three pounds of material to produce each unit, and the cost is $2.75 per pound. A. Prepare a sales budget for January, February and March and for the first quarter in total. Karam Inc. Sales Budget For the Quarter Ended March 31, 20XX Line Item Description January February March Sales in units Unit selling price Budgeted sales April 29,000 Total 8888
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