Required information Miami Solar manufactures solar panels for industrial use. The company budgets production of 4,300 units (solar panels) in July and 5,400 units in August. Each unit requires 3 pounds of direct materials, which cost $6 per pound. The company's policy is to maintain direct materials inventory equal to 20% of the next month's direct materials requirement. As of June 30, the company has 2,580 pounds of direct materials in inventory. Prepare the direct materials budget for July. Units to produce MIAMI SOLAR Direct Materials Budget Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases July 4,300

Required information Miami Solar manufactures solar panels for industrial use. The company budgets production of 4,300 units (solar panels) in July and 5,400 units in August. Each unit requires 3 pounds of direct materials, which cost $6 per pound. The company's policy is to maintain direct materials inventory equal to 20% of the next month's direct materials requirement. As of June 30, the company has 2,580 pounds of direct materials in inventory. Prepare the direct materials budget for July. Units to produce MIAMI SOLAR Direct Materials Budget Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases July 4,300

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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Miami Solar manufactures solar panels for industrial use. The company budgets production of 5,300 units (solar panels) in July and 5,600 units in August.
Jillian Inc. produces leather handbags. The production budget for the next four months is: July 5,100 units, August 7,300, September 7,700, October 8,500. Each handbag requires 1.3 hours of unskilled labor (paid $13 per hour) and 3.1 hours of skilled labor (paid $18 per hour). How much will be paid to skilled labor during the three months July through September? Multiple Choice $361,800 $1,311,300 $6,512,400 $1,121,580
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Wadi Aseeb Company produces curtains. The production budget in units for the next five months is: May 10,000 units, June 14,000, July 15,000, August 16,000, and September 18,000 units. Each curtain requires 5 meters of cotton fabric. The company's cotton fabric inventory policy for ending inventory is 40% of next month's production needs. On May 1 the cotton fabric in stock was 20,000 meters. How much of the cotton fabric needs to be purchased for July in meters? O a. 77,000 O b. 58,000 Oc. 84,00O O d. 72,000 O . None of the given answers.
Electro Company budgets production of 670,000 electric panels in the second quarter and 740,000 electric panels in the third quarter. Each panel requires 0.80 pound of direct material at a cost of $2.00 per pound. The company desires to end each quarter with an ending inventory of this material equal to 20% of next quarter's budgeted materials requirements. Beginning inventory of this material is 107,200 pounds. Prepare a direct materials budget for the second quarter. ELECTRO COMPANY Direct Materials Budget Units to produce Materials required per unit Materials needed for production (pounds) Add: Desired ending materials inventory Total materials required Less: Beginning materials inventory Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases * Second Quarter 670,000 units 0.80 pounds 536,000 pounds
Soft and Silky, Inc., manufactures bedding sets. The budgeted production is for 53,000 comforters in the coming year. Each comforter requires 6 yards of material. The estimated January 1 beginning inventory is 31,000 yards. The desired ending balance is 30,000 yards of material. If the material costs $1.50 per yard, what is the materials budget for the coming year? a.$385,500 b.$478,500 c.$475,500 d.$477,000
Magnolia, Inc., manufactures bedding sets. The budgeted production is for 16,500 comforters this year. Each comforter requires 7 yards of material. The estimated January 1 beginning inventory is 3,740 yards with the desired ending balance of 5,200 yards of material. If the material costs $7.80 per yard. Determine the materials budget for the year.
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Talal Company’s sales budget projects unit sales of part 198Z of 12,000 units in January, 13,000 units in February, and 14,000 units in March. Each unit of part 198Z requires 5 pounds of materials, which cost $2 per pound. Tyson Chandler Company desires its ending raw materials inventory to equal 60% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2019. Instructions (a) Prepare a production budget for January and February 2020. (b) Prepare a direct materials budget for January 2020.
For Crane Company, units to be produced are 5,300 in quarter 1 and 7,420 in quarter 2. It takes 1.6 hours to make a finished unit, and the expected hourly wage rate is $15 per hour. Prepare a direct labor budget by quarters for the 6 months ending June 30, 2022. $ $ CRANE COMPANY Direct Labor Budget 1 Quarter $ $ 2 $ Six Months
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