ABC Company sells a single product. Each unit takes two pounds of material and costs $3.00 per pound. Company A has prepared a production budget by quarters for Year 2 and for the first quarter of Year 3, as follows: Year 2 Year 3 First Second Third Fourth First Budgeted production 30,000 60,000 90,000 100,000 50,000 The ending inventory at the end of a quarter must be equal to 25% of the following quarter’s production needs. 26,000 pounds of material are on hand to start the first quarter of Year 2. Purchases are paid for 40% in the quarter of purchase and 60% in the following quarter. Requirement a) Prepare direct materials budget for the chips by quarter and in for Year 2 in total including the dollar amount of purchases.  b) Prepare cash disbursements budget for the chips by quarter and in for Year 2 in total including the dollar amount of purchases

Lily’s Manufacturing Company has budgeted the following unit sales:                            2021                                       Units                         January                                     10,000                         February                                     8,000                         March                                         9,000                         April                                         11,000                         May                                          15,000 The finished goods units on hand on December 31, 2020, was 1,000 units. Each unit requires 2 pounds of raw materials that are estimated to cost an average of $3 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 10% of next month's anticipated sales. They also have a policy of maintaining a raw materials inventory at the end of each month equal to 20% of the pounds needed for the following month's production.…

The following information is located in the production department of Mindy Ca Second First Quarter 14,300 Quarter Third Quarter Fourth Quarter 21,000 22,500 21,300 Units produced Other information found in the production department includes: Prior Year Ending RM Inventory Prior Year Ending A/P Pounds of RM per unit The ending raw material inventory per month should be 25% of the following month's production needs. The desired ending inventory for the fourth quarter is 3,700 pounds. Management plans to pay for 70% of the raw material purchases in the month bought and 30% in the following month. Direct Materials Budget Question: Given the data, the second quarter direct materials budget should be: Costs of Raw Materials per pound 5. $ Cost of DM Purchased: 10,725 11,775 First Second Quarter Quarter Third Quarter Fourth Quarter $ 4.50 $ 4.50 $ 4.50 $ 4.50

Production Budget and Purchase of Raw Materials. Brown Corporation's sales budget for the following year is as follows: Quarter 1 = 20,000 units %3D Quarter 2 = 25,000 units Quarter 3 = 22,000 units %3D Quarter 4 = 30,000 units Each unit of product requires 2 pounds of direct materials. The company's policy is that at the beginning of each quarter, product inventory is 15 percent of sales for the quarter and direct material inventory is equal to 25 percent of diréct material needs for production in that quarter. Required: Determine the production and purchase budget of raw materials for the second quarter!

jeremy inc. produces leather handbags. The production budget for the next four months is:July 5000 units, August 7300, September 7500, October 8800. Eachhandbag requires 0.5 square meters of leather. Jeremy inc's leather inventory policy is 30 percent of next month's production needs. If the leather policy is met, what will the july 1 inventory be?750.0 square meters1095.0 square meters1825.0 square meters300.0 square meters

Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 625,000 units, estimated beginning inventory is 109,000 units, and desired ending inventory is 89,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.Material A 0.50 lb. per unit @ $0.64 per poundMaterial B 1.00 lb. per unit @ $2.33 per poundMaterial C 1.20 lb. per unit @ $0.78 per poundThe dollar amount of Material B used in production during the year is a.$2,114,475 b.$1,127,720 c.$1,691,580 d.$1,409,650