FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Prepare Grady's direct labor budget, and manufacturing overhead budget for the year.arrow_forwardA 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?arrow_forwardAnderson 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 .....arrow_forward
- I just need to know what the direct materials cost per ounce value is pleasearrow_forwardRequired information [The following information applies to the questions displayed below.) Black Diamond Company produces snowboards. Each snowboard requires 3 pounds of carbon fiber. Management reports that 6,800 snowboards and 7,800 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 168,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 5,300 snowboards and 5,800 pounds of carbon fiber in inventory. Carbon fiber costs $17 per pound. Each snowboard requires 0.5 hour of direct labor at $22 per hour. Variable overhead is budgeted at the rate of $12 per direct labor hour. The company budgets fixed overhead of $1,800,000 for the quarter. Required: 1. Prepare the production budget for the third quarter. Hint: Desired ending inventory units are given. BLACK DIAMOND COMPANY Production Budget (in units) Third Quarter Total required units Units to producearrow_forwardElectro Company budgets production of 700,000 electric panels in the second quarter and 770,000 electric panels in the third quarter. Each panel requires 0.80 pound of direct material at a cost of $2.30 per pound. The company desires to end each quarter with an ending inventory of this material equal to 20% of next quarter's budgeted materials requirements. Beginning inventory of this material is 112,000 pounds. Prepare a direct materials budget for the second quarter.arrow_forward
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