On January 1, 2023, the Kingbird Company budget committee reached agreement on the following data for the six months ending June 30, 2023: 1. 2. 3. Sales units: First quarter 4,900; second quarter 6.000; third quarter 6,900 Ending raw materials inventory: 40% of the next quarter's production requirements Ending finished goods inventory: 25% of the next quarter's expected sales units Third-quarter production: 7,100 units The ending raw materials and finished goods inventories at December 31, 2022, had the same percentages for production and sales that are budgeted for 2022.3 kilograms of raw materials are needed to make each unit of finished goods. Raw materials purchased am expected to cost $4 per kilogram.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
Please do not give solution in image format thanku
On January 1, 2023, the Kingbird Company budget committee reached agreement on the following data for the six months ending
June 30, 2023:
Sales units: First quarter 4,900; second quarter 6,000; third quarter 6,900
Ending raw materials inventory: 40% of the next quarter's production requirements
Ending finished goods inventory: 25% of the next quarter's expected sales units
4. Third-quarter production: 7,100 units
1.
2.
3.
The ending raw materials and finished goods inventories at December 31, 2022, had the same percentages for production and sales
that are budgeted for 2022. 3 kilograms of raw materials are needed to make each unit of finished goods. Raw materials purchased are
expected to cost $4 per kilogram.
Prepare a production budget by quarters for the six-month period ended June 30, 2023.
KINGBIRD COMPANY
Production Budget
For the Six Months Ending June 30, 2023
Quarter
Expected unit sales
✓
v
Y
1
Prepare a direct materials budget by quarters for the six-month period ended June 30, 2023.
KINGBIRD COMPANY
Direct Materials Budget
For the Six Months Ending June 30, 2023
Quarter
1
2
2
Transcribed Image Text:On January 1, 2023, the Kingbird Company budget committee reached agreement on the following data for the six months ending June 30, 2023: Sales units: First quarter 4,900; second quarter 6,000; third quarter 6,900 Ending raw materials inventory: 40% of the next quarter's production requirements Ending finished goods inventory: 25% of the next quarter's expected sales units 4. Third-quarter production: 7,100 units 1. 2. 3. The ending raw materials and finished goods inventories at December 31, 2022, had the same percentages for production and sales that are budgeted for 2022. 3 kilograms of raw materials are needed to make each unit of finished goods. Raw materials purchased are expected to cost $4 per kilogram. Prepare a production budget by quarters for the six-month period ended June 30, 2023. KINGBIRD COMPANY Production Budget For the Six Months Ending June 30, 2023 Quarter Expected unit sales ✓ v Y 1 Prepare a direct materials budget by quarters for the six-month period ended June 30, 2023. KINGBIRD COMPANY Direct Materials Budget For the Six Months Ending June 30, 2023 Quarter 1 2 2
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Budgeting
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