On January 1, 2022, the Bonita Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2022. 2 Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: The ending raw materials and finished goods inventories at December 31, 2021, follow the same percentage relationships to production and sales that occur in 2022. Three pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound. Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2020. Units to be Produced Direct Materials Per Unit Total Pounds Needed for Production First quarter 6,800: second quarter 8,160; third quarter 9,520. 40% of the next quarter's production requirements, 25% of the next quarter's expected sales units. 9.870 units. Add Total Materials Required v Desired Ending Direct Materials (Pounds) BONITA COMPANY Direct Materials Budget For the Six Months Ending June 30, 2020 Quarter

On January 1, 2022, the Bonita Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2022. 2 Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: The ending raw materials and finished goods inventories at December 31, 2021, follow the same percentage relationships to production and sales that occur in 2022. Three pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound. Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2020. Units to be Produced Direct Materials Per Unit Total Pounds Needed for Production First quarter 6,800: second quarter 8,160; third quarter 9,520. 40% of the next quarter's production requirements, 25% of the next quarter's expected sales units. 9.870 units. Add Total Materials Required v Desired Ending Direct Materials (Pounds) BONITA COMPANY Direct Materials Budget For the Six Months Ending June 30, 2020 Quarter

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...

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