Winners Company expects to manufacture and sell 30,000 athletic uniforms for £80each in 2024. Direct materials costs are £20, direct manufacturing labor is £8, andmanufacturing overhead is £6 for each uniform. The following inventory levels applyto 2024:Direct materialsBeginning inventory12,000 unitsEnding inventory9,000 unitsWork-in-process inventoryO unitsO unitsFinished goods inventory6,000 units5,000 unitsWhat is the amount budgeted for direct material purchases in 2024?a.£520,000b. £600,000C.£580,000d. £760,000

Good day! We are asked to compute the Budgeted for Direct Materials Purchases. First step is to…

Answered: Winners Company expects to manufacture…

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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(b) Breakthrough Ltd provided the following standard cost card. Its budgeted production and sales for December 2021 were 10,000 units @ TZS 200,000 per unit. Budgeted fixed overheads were Tshs 200 millian. The standard cost card of breakthrough Ltd. TZS Direct material 4 kg of A at Tshs 5,000 per kg 2 kg ol B at Tshs 20,000 per kg Direct labour (5. hours per unit of production at Tshs15,000 per hour) Variable overhead (5 hours at Tshs 5,000 per labour hour) 20,000 40,000 75,000 25.000 Total variable cost 160.000 The company has also provided the actual results for December 2021. (AI the units produced during the period were sold. There is no closing inventory). TZS 000 TZS 000 2,089,500 Sales 10,500 units at Tshs199,000 Direct material A. 40,000kg at Tshs 6,000 per kg B. 23,000kg at Tshs 20,000 per kg Direct Labour 63.000 houcs at Tshs 15,000 per hour Variable overheads 63,000 hours at Tshs 4,000 per hour 240,000 460,000 945,000 252.000 (1,897,000) Actual contribution 192,500 Actual…
Ivanhoe, Inc. produces men's shirts. The following budgeted and actual amounts are for 2022: Cost Direct materials Direct labor Fixed overhead Budget at 2,650 units $66,250 71.550 39.050 Actual Amounts at 2,950 units $76,500 78,750 38,200
A9
Use the information provided below to prepare the Materials Purchases Budget of Lunar Limited for 2025. INFORMATION The required production of Lunar Limited for 2025 for the only product that it manufactures is 5 000 units. Four kilograms of direct materials are required for each unit produced. The direct materials inventories on 01 January 2025 and 31 December 2025 are expected to be 3 000 kilograms and 5 000 kilograms respectively. The expected purchase price is R6 per kilogram.
Coronado Industries determines that 63000 pounds of direct materials are needed for production in July. There are 4200 pounds of direct materials on hand at July 1 and the desired ending inventory is 3600 pounds. If the cost per unit of direct materials is $3, what is the budgeted total cost of direct materials purchases? O 183600. O 190800. O 187200. O 194400.
1. ABC Company is budgeting sales of 110,000 units of Product R for the month of November 2023. Production of one unit of R requires two units of Material A and three units of Material B. Actual inventory units on November 1 and budgeted inventory units on November 30 are as follows: Actual inventory November 1 Budgeted inventory at November 30 20,000 10,000 18,000 25,000 22,000 24,000 How many units of Material A is ABC planning to purchase during November 2023? Show your solution. 2. Ashton Appliances Inc. is preparing a budget for 2024 by quarters. Budget data appear as follows: Product R Material A Material B 1st quarter 2nd quarter 3rd quarter 4th quarter 1st quarter, 2025 Budgeted sales Materials purchases Beginning materials P860,000 940,000 990,000 960,000 $280,000 360,000 400,000 300,000 P75,000 65,000 50,000 45,000 40,000 Direct labor is budgeted at P140,000 each quarter with factory overhead estimated at 200 percent of direct labor costs. Selling and general expenses are…
Use the information below for Mandy Corporation to answer the question that follow. Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 643,000 units, estimated beginning inventory is 105,000 units, and desired ending inventory is 84,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.Material A: 0.50 lb. per unit @ $0.61 per poundMaterial B: 1.00 lb. per unit @ $2.37 per poundMaterial C: 1.20 lb. per unit @ $0.86 per poundThe dollar amount of Material C used in production during the year is a.$577,714 b.$770,285 c.$706,094 d.$641,904
Zizi plc uses a standard absorption costing system and produces and sells product 8W. The standard cost card is below: Product 8W (€ per unit) Direct material (5 per kg) 15 Direct labour (6 per hour) 12 Fixed manufacturing overhead 10 Total production cost 37 Standard profit 13 Standard selling price 50 * Absorption rate based on standard labour hours Budgeted and actual production and sales units for december 2020 were as follows: Budget Actual Production 1,100 900 Sales 1,000 800 Actual data for December 2020 were as follows € Direct material purchases 1,200 kgs costing 12,000 Direct materials used 1,100 kgs Direct labour hours 500 hours costing 6,000 Fixed manufacturing overhead 5,000 Sales revenue 30,000 An analysis of the Direct labour hours shows that the 500 hours that were paid for 50 were idle time due to a machinery breakdown. There were no inventories of Direct materials or finished products (planned or actual) at the…
Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 625,000 units, estimated beginning inventory is 109,000 units, and desired ending inventory is 89,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.Material A 0.50 lb. per unit @ $0.64 per poundMaterial B 1.00 lb. per unit @ $2.33 per poundMaterial C 1.20 lb. per unit @ $0.78 per poundThe dollar amount of Material B used in production during the year is a.$2,114,475 b.$1,127,720 c.$1,691,580 d.$1,409,650
Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,000 units will be produced, with the following total costs: Direct materials ? Direct labor $71,000 Variable overhead 19,000 Fixed overhead 180,000 Next year, Pietro expects to purchase $122,000 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Direct materials Inventory Work-in-Process Inventory Beginning $7,000 $11,700 Ending $6,900 $13,700 Required: Question Content Area 1. Prepare a statement of cost of goods manufactured. Pietro Frozen Foods, Inc. Statement of Cost of Goods Manufactured For the Coming Year Direct materials $- Select - - Select - Materials available $fill in the blank 518a60ff502205f_5 - Select - Direct materials used in production $fill in the blank 518a60ff502205f_8 - Select - - Select - Total manufacturing costs added $fill in the blank 518a60ff502205f_13 - Select - - Select - Cost of goods…

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