Beat, Inc., expects to sell 60,000 athletic uniforms for $80 each in 2017. Direct materials costs are $20, direct manufacturing labor is $8, and manufacturing overhead is $6 for each uniform. The following inventory levels apply to 2017: 1. Bent. Inc., expects to sell 60.000 athletic unifoms for $80 each in 2017. Direct materinls costs are $20, direct manufacturing labor is $8. and manufacturing overhead is $6 for each uni following inventory levels apply to 2017: Beginning inventory Ending inventory 24.000 units Direct materials 18.000 units O units Work-in-process inventory Finished goods inventory O units 12.000 units 10,000 units What is the amount budgeted for direct material purchases in 2017? What is the amount budgeted for direct material purchases in 2017?

Beat, Inc., expects to sell 60,000 athletic uniforms for $80 each in 2017. Direct materials costs are $20, direct manufacturing labor is $8, and manufacturing overhead is $6 for each uniform. The following inventory levels apply to 2017: 1. Bent. Inc., expects to sell 60.000 athletic unifoms for $80 each in 2017. Direct materinls costs are $20, direct manufacturing labor is $8. and manufacturing overhead is $6 for each uni following inventory levels apply to 2017: Beginning inventory Ending inventory 24.000 units Direct materials 18.000 units O units Work-in-process inventory Finished goods inventory O units 12.000 units 10,000 units What is the amount budgeted for direct material purchases in 2017? What is the amount budgeted for direct material purchases in 2017?

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

TikTok Electronics manufactures an aluminium fibre tripod model “TRI-X” which sells for $1,600. The production cost computed per unit under traditional costing for each model in 2019 was as follows: Traditional Costing TRIX Direct Materials $700 Direct Labour ($20/hour) $120 Manufacturing overhead ($38 per DLH) $228 Total per unit cost $1, 048 In 2019, TikTok Electronics manufactured 26,000 units of TRI-X. Under traditional costing, the gross profit on TRI-X was $552 ($1,600-$1,048). Management is considering phasing out TRI- X as it has continuously failed to reach the gross profit target of $600. Before finalizing its decision, management asks TikTok Electronics management accountant to prepare ananalysis using activity-based costing (ABC). The management accountant accumulates the following information about overhead for the year ended December 31, 2019. Activity Cost Pools Cost Drivers…
Best Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2024. The 2024 revenue and cost information for Best follows: (Click the icon to view the revenue and cost information.) Assume each fender produced was sold for the standard price of $30, and total selling and administrative costs were $150,000. Prepare a standard cost income statement for 2024 for Best Fender. (Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive numbers.) Gross Profit Operating Income (Loss) Best Fender Standard Cost Income Statement For the Year Ended December 31, 2024 CEP Data table Sales Revenue Cost of Goods Sold (at standard) Direct materials cost variance Direct materials efficiency variance Direct labor cost variance Direct labor efficiency variance Variable overhead cost variance Variable overhead efficiency variance Fixed overhead cost variance Fixed overhead volume variance Print Done $ 600,000 191,240 7,250 F 5,960 U 460 U…
RST Corporation produces 70,000 cell phones per year. The company estimates its direct material costs for the cell phone to be $400 per unit and its conversion costs (direct labor plus support) to be $500 per unit. Annual inventory carrying costs, not included in these costs are estimated to be 10%. 14. RST's average inventory levels are estimated as follows: Direct material Work in process (100% complete for materials and (50% complete for conversion) Finished goods 2 months of production 2 months of production 1 month of production What is RST's annual inventory carrying costs? A) $1,500,000 B) $1,650,000 C) $1,750,000 D) $2,000,000
Greek Manufacturing Company produces and sells a line of product that are sold usually all year round. Thecompany has a maximum production capacity of 100,000 units per year. Operating at normal capacity, thebusiness earned Operating Income of $600,000 in 2020. The following cost data has been prepared for theyear ended December 31, 2020.Selling price per unit……………………………………… $50.00Production Costs:Direct Materials …………………………………. $10.00Direct Labour ……………………………………. $8.00Variable Manufacturing Overhead ……………. $7.00Fixed Manufacturing Overhead…………....................... $450,000Fixed Selling & Administrative Expenses……………… $300,000Variable selling expense per unit ………………………. $10.00 1. Greek’s management team is concerned about the selling expenses associated with the product and wants to reduce the variable selling expense per unit by 30%, which will see a simultaneous reduction in the total fixed selling expenses by $30,000. If they are able to accomplish this feat, it is expected…
Rubble, Inc. produced 1,180 backpacks, the company's product in 2020. The standard cost was 4 yards of cloth at a standard cost of $1.00 per yard. The accounting records show that 2,900 yards of cloth were used, and the company paid $1.05 per yard. Standard time to make the backpacks was 2 direct labor hours per unit at a standard rate of $9.65 per direct labor hours. Employees worked a total of 1,600 hours and were paid $9.15 per hour.Calculate the direct materials cost variance.
Rubble, Inc. produced 1,100 backpacks, the company's product in 2020. The standard cost was 4 yards of cloth at a standard cost of $0.90 per yard. The accounting records show that 2,700 yards of cloth were used, and the company paid $1.15 per yard. Standard time to make the backpacks was 2 direct labor hours per unit at a standard rate of $9.80 per direct labor hours. Employees worked a total of 1,500 hours and were paid $9.15 per hour.Calculate the direct labor cost variance.
Rubble, Inc. produced 1,100 backpacks, the company's product in 2020. The standard cost was 4 yards of cloth at a standard cost of $0.90 per yard. The accounting records show that 2,700 yards of cloth were used, and the company paid $1.15 per yard. Standard time to make the backpacks was 2 direct labor hours per unit at a standard rate of $9.80 per direct labor hours. Employees worked a total of 1,500 hours and were paid $9.15 per hour.Calculate the direct labor cost variance.
Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12.00 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month’s sales. Ending direct materials inventory should be 30 percent of next month’s production. Expected unit sales (frames) for the upcoming months follow: March 275 April 250 May 300 June 400 July 375 August 425 Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.60 per unit sold.Iguana, Inc., had $10,800 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the…
Shadee Corp. expects to sell 590 sun visors in May and 430 in June. Each visor sells for $21. Shadee’s beginning and ending finished goods inventories for May are 70 and 45 units, respectively. Ending finished goods inventory for June will be 70 units. Each visor requires a total of $5.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 27 closures on hand on May 1, 16 closures on May 31, and 24 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,300 per month, and variable manufacturing overhead is $2.50 per unit produced. Required: 1. Determine Shadee's budgeted cost of closures purchased for May and June. 2. Determine Shadee's budget manufacturing overhead for May and June.
19. Lito Fray Company produces potato chips. The company expects to sell 45,000 bags of chips for $3 each in 2018. The expected cost of potatoes is $0.60 per pound. Each bag of chips requires 1.8 pounds of potatoes. Direct labor is $0.20 per bag and manufacturing overhead is $0.65 for each bag. The following inventory levels apply to 2018 (there are no work in process inventories): Beginning Inventory 18,700 pounds 16,700 bags Ending Inventory 20,600 pounds 15,600 bags Pounds of potatoes (direct materials) Bags of chips (finished goods inventory) What is the expected cash expenditure for potato purchases in 2018? a. $48,552 b. $48,600 c. $49,740 d. $27,480 e. $28,140 f. $80,920 g. $50,604 h. None of the above
Mixing Company manufactured 1,900 units of its only product during 2022. The inputs for this production are as follows: 490 pounds of Material A at a cost of $1.90 per pound 340 pounds of Material H at a cost of $3.15 per pound 460 direct labor hours at $36 per hour The firm manufactured 2,259 units of the same product in 2021 with the following inputs: 580 pounds of Material A at a cost of $1.60 per pound 450 pounds of Material H at a cost of $2.90 per pound 480 direct labor hours at $34 per hour The partial operational productivity of Material H in 2021 is: Multiple Choice 0.20 units per pound. 0.50 units per pound. 2.01 units per pound. 5.02 units per pound. 6.02 units per pound.
Estrada Corporation produced 200,000 watches that it sold for $20 each during 2019. The company determined that fixed manufacturing cost per unit was $9 per watch. The company reported a $1,200,000 gross margin on its 2019 financial statements. Required Determine the variable cost per unit, the total variable cost, and the total contribution margin.