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On January 1, 2022, the Sheffield Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2022. Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: First quarter 7,300; second quarter 8,760; third quarter 10,220. 40% of the next quarter's production requirements. 25% of the next quarter's expected sales units. 10,570 units. 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.

On January 1, 2022, the Sheffield Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2022. Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: First quarter 7,300; second quarter 8,760; third quarter 10,220. 40% of the next quarter's production requirements. 25% of the next quarter's expected sales units. 10,570 units. 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2022, the Sheffield Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2022. Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: First quarter 7,300; second quarter 8,760; third quarter 10,220. 40% of the next quarter's production requirements. 25% of the next quarter's expected sales units. 10,570 units. 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.
Transcribed Image Text:On January 1, 2022, the Sheffield Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2022. Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: First quarter 7,300; second quarter 8,760; third quarter 10,220. 40% of the next quarter's production requirements. 25% of the next quarter's expected sales units. 10,570 units. 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.
Expected Unit Sales Add V: Desired Ending Finished Goods Unit Total Required Units Less v: Beginning Finished Goods Unit Required Production Units Desired Ending Direct Materials (Pounds) Total Cost of Direct Materials Purchases SHEFFIELD COMPANY Production Budget For the Six Months Ending June 30, 2022 $ 7300 2190 9490 1825 i 7665 OFILITICSSZA Quarter WALLE Direct Materials Budget Quarter $ $ 2 8760 2 2555 11315 2190 i 9125
Transcribed Image Text:Expected Unit Sales Add V: Desired Ending Finished Goods Unit Total Required Units Less v: Beginning Finished Goods Unit Required Production Units Desired Ending Direct Materials (Pounds) Total Cost of Direct Materials Purchases SHEFFIELD COMPANY Production Budget For the Six Months Ending June 30, 2022 $ 7300 2190 9490 1825 i 7665 OFILITICSSZA Quarter WALLE Direct Materials Budget Quarter $ $ 2 8760 2 2555 11315 2190 i 9125
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