(S2, 2021)Woxy company is considering its forthcoming projections for budget purposes. Woxy's projected sales for next year and beginning andending inventory data are as follows:SâlesBeginning inventoryDesired ending inventory50,000 units4,000 units8,000 unitsThe selling price is $40 per unit. Each unit requires four pounds of material which costs $6 per pound. The beginning inventory of rawmaterials is 12,000 pounds. The company wants to have 3,000 pounds of material in inventory at the end of the year.Woxys' budgeted total purchase cost of direct materials would beO a. $1,350,00ÓO b. $1,242,000O c. $1,206,000O d. $1,296,000O e. some other amount not listed hereO Type here to search

Direct material purchase budget shows how much quantity of direct materials needs to be purchased in…

Answered: Woxy company is considering its…

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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The following are the sales forecast of Avril Furniture Company for the upcoming fiscal year: Year 2 Year 3 Quarter 1 10,000 Quarter 3 15,000 Quarter 2 Quarter 4 23,000 Quarter 1 30,000 Budgeted unit sales Past experience has shown that the ending inventory for each quarter should be equal to 10% of the next quarter's sales in units. The company expect to start the first quarter with 4,000 units. Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. Fourth quarter ending of materials is estimated as 8,000 pounds and a total of 12,000 pounds of material A are on hand to start the year. The cost of material A is $3 per pound. Required: a. Prepare a production budget showing the number of units to be produced each quarter and for the year in totak proď th. b. Prepare Avril's Direct Material Budget and calculate direct…
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You have been presented with the following information by the Budget Committee of the organization in which you work: Sales forecast January – April 2020 Details Study lamps Accent lights Expected selling price per unit $300 $500 Sales Volume forecast: January 2 000 units 1 000 units February 2 500 units 1 500units March 3 000 units 1 000 units April 2 000 units 1 200 units Additional information: (i) Beginning inventories: study lamps 300 units; accent lights 200 units. (ii) The ending inventory for each product at the end of each month is to be maintained at 20% of the budgeted sales for the next month. (iii) To make one study lamp, four (4) units of raw material lumber are used, while five (5) units of raw material aluminum are used to make one accent lights. Required: The Sales Budget for both products for January to March 2020. The Direct Material usage budget.
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1. WFU Corporation expects the unit sales of Product MSA to increase by 10%, while Product MA will increase by 5% of last year's sales. The company will increase the price of Product MSA by $10, while Product MA will remain the same. Prepare the budgeted revenue for the upcoming year, 20Y6 with the information below for 20Y5. Product MSA Product MA 2. WFU Corporation has a desired ending inventory of 5% of the upcoming year's sales for each year. In 20Y7, the company expects to sell 20,000 of Product MSA and 12,000 of Product MA. Prepare the company's production budget for 2016. 3. Each finished good of Product MSA and Product MA requires two materials, Product M and Product A, which are measured in pounds. Product M costs $7.50 per pound, and Product A costs $5.00 per pound. The required pounds of material per finished good and beginning and ending inventories are shown. Prepare the 20Y6 direct materials purchases budget. Product MSA Product MA Beginning inventory Ending inventory…
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