A company has the following budgeted sales: Month Jan Feb Mar Apr May Sales in Units 3,520 3,905 4,560 4,190 4,000 Finished goods inventory: the company will have 50 percent of the next period's sales on hand at the end of each period. Direct materials cost $3.50 per pound, and each unit requires 2 pounds. Direct materials inventory: the company will have 50 percent of the next period's production needs on hand at the end of each period. Direct materials on hand at the beginning of the year is 3,713 pounds. Required: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine budgeted cost of direct materials purchased for January and February. Note: Use rounded Budgeted Production units in intermediate calculations. Round your answers to 2 decimal places. Budgeted Cost of Material Purchased Jan Feb
A company has the following budgeted sales: Month Jan Feb Mar Apr May Sales in Units 3,520 3,905 4,560 4,190 4,000 Finished goods inventory: the company will have 50 percent of the next period's sales on hand at the end of each period. Direct materials cost $3.50 per pound, and each unit requires 2 pounds. Direct materials inventory: the company will have 50 percent of the next period's production needs on hand at the end of each period. Direct materials on hand at the beginning of the year is 3,713 pounds. Required: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine budgeted cost of direct materials purchased for January and February. Note: Use rounded Budgeted Production units in intermediate calculations. Round your answers to 2 decimal places. Budgeted Cost of Material Purchased Jan Feb
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Hh2.
Account
Transcribed Image Text:A company has the following budgeted sales:
Month
Jan
Feb
Mar
Apr
May
Sales in
Units
3,520
3,905
4,560
4,190
4,000
Finished goods inventory: the company will have 50 percent of the next period's sales on hand at the end of each period.
Direct materials cost $3.50 per pound, and each unit requires 2 pounds.
Direct materials inventory: the company will have 50 percent of the next period's production needs on hand at the end of each
period. Direct materials on hand at the beginning of the year is 3,713 pounds.
Required:
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine budgeted cost of direct materials purchased for January and February.
Note: Use rounded Budgeted Production units in intermediate calculations. Round your answers to 2 decimal places.
Budgeted Cost of Material Purchased
Jan
Feb
Transcribed Image Text:A company has the following budgeted sales:
Month
Jan
Feb
Mar
Apr
May
Sales in
Units
3,520
3,905
4,560
4,190
4,000
Finished goods inventory: the company will have 50 percent of the next period's sales on hand at the end of each period.
Direct materials cost $3.50 per pound, and each unit requires 2 pounds.
Direct materials inventory: the company will have 50 percent of the next period's production needs on hand at the end of each
period. Direct materials on hand at the beginning of the year is 3,713 pounds.
Required:
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine budgeted production for January, February, and March.
Note: Do not round your intermediate calculations and round your final answers to the nearest whole number.
Budgeted Production (Units)
Jan
Feb
Mar
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