A sporting goods manufacturer budgets production of 42,000 pairs of ski boots in the first quarter and 33,000 pairs in the second quarter of the upcoming year. Each pair of boots requires 2 kilograms (kg) of a key raw material. The company aims to end each quarter with ending raw materials inventory equal to 20% of the following quarter's material needs. Beginning inventory for this material is 16,800 kg and the cost per kg is $7. What is the budgeted materials purchases cost for the first quarter? Multiple Choice $588.000. $562,800. $470,400.

A sporting goods manufacturer budgets production of 42,000 pairs of ski boots in the first quarter and 33,000 pairs in the second quarter of the upcoming year. Each pair of boots requires 2 kilograms (kg) of a key raw material. The company aims to end each quarter with ending raw materials inventory equal to 20% of the following quarter's material needs. Beginning inventory for this material is 16,800 kg and the cost per kg is $7. What is the budgeted materials purchases cost for the first quarter? Multiple Choice $588.000. $562,800. $470,400.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In 2020, Top-Spin Racquet Company produced 64,000 tennis racquets and incurred total Direct Material costs of $2,240,000. Top-Spin expects materials costs to increase by 5% in 2021 and expects to produce 68,000 tennis racquets in 2021. What is Top-Spin's total budgeted Direct Materials cost for 2021? $2,380,000 $2,499,000 $2,352,000 $2,240,000
Shalom Company measures its activity in terms of court reservations. Last month, the budgeted level of activity was 480 player-visits, and the actual level of activity was 440 player-visits. The company budgets for variable overhead costs of P3.30 per player-visit and fixed overhead costs of P10,600 per month. The actual variable overhead cost last month was P3,830 and the actual fixed overhead cost was P8,780. In your flexible budget performance report, identify the difference between budgeted and actual costs and indicate as favorable or unfavorable. Format should be: 8,000 F or 8,000 UF No need to indicate if the amount is positive or negative. total fixed manufacturing costs
Plastic Pro, Inc. (PPI), developed standard costs for direct material and direct labor. In 2022, PPI estimated the following standard costs for one of Its better products, the 30-gallon heavy-duty plastic container. Budgeted quantity 020 pounds Direct materials Direct labor Budgeted price $40 per pound 0.10 hours $18 per hour During May, PPI produced and sold 4,000 containers using 1,000 pounds of direct materials at an average cost per pound of $37 and 475 direct manufacturing labor hours at an average wage of $18.75 per hour. The direct material efficiency variance during May is: O $5,000 favorable O $5,000 unfavorable O $7,400 favorable O $8,000 unfavorable
Labor costs per hour and the other costs are not expected to change during the year. However, the cotton cost per yard will increase by 20% at the start of the coming budget period. The current inventory of blue rugs is 60,000 units and management would like to see an increase of inventory to 105,000 units. Production will occur evenly throughout the year. Inventory levels fo Xander Manufacturing Company manufactures blue rugs. The company needs to prepare a budget for the coming year. The following costs and other data apply to rug production: Direct materials per rug 1.0 yard cotton at $3 per yard 0.2 yards canvas finish at $10 per yard Direct labor per rug: 0.5 hour at$16 Overhead per rug Indirect labor Indirect materials per hour $0.5 0.15 0.3 Power Machine costs 1.25 Lease costs 0.8 Total overhead per unit $3.0 Fixed costs include the machine costs and building lease costs. The fixed cost rate is calculated based on a normal production of 300,000 units per vear Other overhead…
Variable Costs Total Variable Costs Depreciation Supervision Total Costs Total Fixed Costs Direct Labor Activity Level Direct Materials Fixed Costs Finished Units Overhead
Prepare Grady's direct labor budget, and manufacturing overhead budget for the year.
Bowshar Hills Company sells shoes and expects to produce and sell 30,000 units during the year 2022 with no beginning or ending inventories as it plans to produce what it can sell during the same year. The total budgeted fixed manufacturing overhead cost for the year is $50,000. The company accounts show that the budgeted direct material cost is $4 per unit, budgeted direct labor cost is $6 per direct labor hour, and budgeted variable manufacturing overhead is $2 per direct labor hour. Each unit produced takes 2 hours of skilled labor time. The cost of goods sold reported in the budgeted income statement for 2022 is: O a. $650,000 O b. $450,000 Oc. None of the given answers O d. $1,050,000 O e. $850,000
A company requires 190 pounds of plastic to meet the production needs of a product. It currently has 30 pounds of plastic inventory. The desired ending inventory of plastic is 60 pounds. How many pounds of plastic should be budgeted for purchasing during the coming period?
Shalom Company plans to produce 50,000 units of Peace Products in 2023. Budgeted variable manufacturing costs per unit are direct materials P7, direct labor P12, and overhead P18. Annual budgeted fixed manufacturing overhead costs are P96,000 for depreciation and P45,000 for supervision. In February, Shalom produced 6,000 units and incurred the following costs: direct materials P38,900, direct labor P70,200, variable overhead P116,500, depreciation P8,000, and supervision P4,000. what is the Total fixed manufacturing overhead? what is the Direct materials: what is the Total manufacturing costs
Anderson Labs performs a specialty lab test for local companies for $50 per test. For the upcoming quarter, Anderson Labs is projecting the following sales: The budgeted cost of performing each test is $24. Operating expenses are projected to be $57,000 in January, $52,000 in February, and $61,000 in March. Anderson Labs is subject to a corporate tax rate of 30%. Requirement Prepare a budgeted income statement for the first quarter, with a column for each month and for the quarter. January February March Number of lab tests 5,900 4,700 5,200 ..... Prepare the budgeted income statement by first calculating the operating income, then calculate the net income. Anderson Labs Budgeted Income Statement For the Quarter Ended March 31 January February March Quarter Sales Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Income tax expense Net income .....
Sneaky Snacky Squirrel Inc. has a budget of $900,000 in 2021 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $80,000 in variable costs. The new method will require $40,000 in training costs and $100,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 150,000 units. Appraisal costs for the year are budgeted at $600,000. The new prevention procedures will save appraisal costs of $50,000. Internal failure costs average $15 per failed unit of finished goods. The internal failure rate is expected to be 3% of all completed items. The proposed changes will cut the internal failure rate by one-third. Internal failure units are destroyed. External failure costs average $54 per failed unit. The company's average external failures average 3% of units sold. The new proposal will reduce this rate by 50%. Assume all units produced are sold…
I just need to know what the direct materials cost per ounce value is please