FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

bartleby

Concept explainers

Question

1) Gertrude Products expects the following sales of its single product:

 

 

Units

July

6,000

August

6,500

September

7,200

October

7,800

November

8,800

 

Gertrude desires an ending finished goods inventory to be equal to 20% of the next month's sales needs. July 1 inventory is projected to be 1,000 units. Each unit requires 5 pounds of Chemical A and 14 pounds of Chemical B. July 1 materials inventory includes 10,600 pounds of Chemical A and 76,000 pounds of Chemical B. Gertrude desires to maintain a Chemical A inventory equal to 30% of next month's production needs and a Chemical B inventory equal to 100% of next month's production needs.

 

a Prepare a production budget for Gertrude for July, August and September.

a. Production

July

August

September

Qtr. Total

Sales

 

 

 

 

 

+Ending Inv.

 

 

 

 

 

-Beginning Inv.

 

 

 

 

 

Production

 

 

 

 

 

 

 

b. Prepare a direct materials purchases budget for Chemical A, for the quarter.

b. Chemical A

July

August

September

Qtr. Total

Production

 

 

 

 

 

x 5 Pounds

 

 

 

 

 

Chemical A

needs

 

 

 

 

+ Ending Inv.

 

 

 

 

 

Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Accounting
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
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education