Marcy Jones, Bates & Hill Fabricators' purchasing manager, has just received the company's production budget for the first quarter.     January   February   March   Quarter   Budgeted unit sales   25,000   28,000   32,000   85,000   + Budgeted ending inventory   5,600   6,400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Prepare Bates & Hill's direct materials purchases budget for the first quarter. (Enter price per pound to 2 decimal places, e.g. 52.75.)

 

 

 

Marcy Jones, Bates & Hill Fabricators' purchasing manager, has just received the company's production budget for the first quarter.

   
January
 
February
 
March
 
Quarter
 
Budgeted unit sales
  25,000   28,000   32,000   85,000  
+ Budgeted ending inventory
  5,600
 
6,400
 
6,800
 
6,800  
Total units required
  30,600   34,400   38,800   91,800  
- Beginning inventory
  3,200   5,600   6,400   3,200  
Budgeted production
  27,400
 
28,800
 
32,400
 
88,600  


Budgeted sales for April is 34,000 units and for May is 26,000 units.

Each brick requires 6 pounds of clay, and Marcy expects to pay $1.50 per pound of clay in the coming year. Company policy requires an ending direct materials inventory each month that will meet 10% of the following month's production needs. Company policy requires an ending finished goods inventory each month that will meet 20% of the following month’s sales volume. Marcy expects to have 15,000 pounds of clay at a cost of $22,500 in inventory at the beginning of the year.

January
February
March
Quart
$
$
2$
$
%24
%24
%24
%24
24
%24
%24
>
>
>
>
>
>
>
>
>
Transcribed Image Text:January February March Quart $ $ 2$ $ %24 %24 %24 %24 24 %24 %24 > > > > > > > > >
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Risk Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education