Managerial Accounting: Creating Value in a Dynamic Business Environment
12th Edition
ISBN: 9781260417074
Author: HILTON, Ronald
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Textbook Question
Chapter 9, Problem 23E
Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year 20x1. Two units of raw material are required to produce each unit of finished product.
Required:
- 1. If Bodin Company plans to sell 480,000 units during the year, compute the number of units the firm would have to manufacture during the year.
- 2. If 500,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be purchased.
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Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in
units) are plannned for the year 20x1. Five units of raw material are required to produce each unit of
finished product.
Raw material
Work in process
Finished goods
Required:
January 1
41,000
December 31
48,000
20,000
20,000
92,000
59,000
1. If Bodin Company plans to sell 452,000 units during the year, compute the number of units the firm
would have to manufacture during the year.
2. If 520,000 finished units were to be manufactured by Bodin Company during the year, determine the
amount of raw material to be purchased.
1. Required production in units
2. Raw material purchases in units
Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year
20x1. Five units of raw material are required to produce each unit of finished product.
Raw material
Work in process
Finished goods
January 1 December 31
36,000
17,000
98,000
51,000
17,000
62,000
Required:
1. If Bodin Company plans to sell 472,000 units during the year, compute the number of units the firm would have to manufacture
during the year.
2. If 509,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be
purchased.
1. Required production in units
2. Raw material purchases in units
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Gardner Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year.
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Beginning Inventory
Ending Inventory
Raw material*
48,000
58,000
Finished goods
88,000
58,000
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* Three pounds of raw material are needed to produce each unit of finished product.
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If Gardner Corporation plans to sell 520,000 units during next year, the number of units it would have to manufacture during the year would be:
Chapter 9 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 9 - Explain how a budget facilitates communication and...Ch. 9 - Prob. 2RQCh. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - What is meant by the term operational budgets?...Ch. 9 - How does activity-based budgeting explain the...Ch. 9 - Prob. 8RQCh. 9 - Give three examples of how the City of Boston...Ch. 9 - Describe the role of a budget director.
Ch. 9 - What is the purpose of a budget manual?Ch. 9 - Prob. 12RQCh. 9 - Prob. 13RQCh. 9 - Define the term budgetary slack, and briefly...Ch. 9 - How can an organization help to reduce the...Ch. 9 - Prob. 16RQCh. 9 - Discuss this comment by a small-town bank...Ch. 9 - List the steps you would go through in developing...Ch. 9 - Prob. 19RQCh. 9 - Prob. 20RQCh. 9 - Fill in the missing amounts in the following...Ch. 9 - Bodin Company budgets on an annual basis. The...Ch. 9 - Coyote Loco, Inc., a distributor of salsa, has the...Ch. 9 - Greener Grass Fertilizer Company plans to sell...Ch. 9 - The following information is from Tejas...Ch. 9 - Tanya Williams is the new accounts manager at East...Ch. 9 - Sound Investments, Inc. is a large retailer of...Ch. 9 - Handy Hardware is a retail hardware store....Ch. 9 - Prob. 30ECh. 9 - Spiffy Shades Corporation manufactures artistic...Ch. 9 - Western State University (WSU) is preparing its...Ch. 9 - Mary and Kay, Inc., a distributor of cosmetics...Ch. 9 - Prob. 34PCh. 9 - Alpha-Tech, a rapidly growing distributor of...Ch. 9 - Prob. 36PCh. 9 - Scholastic Furniture, Inc. manufactures a variety...Ch. 9 - Prob. 38PCh. 9 - Vista Electronics, Inc. manufactures two different...Ch. 9 - Prob. 40PCh. 9 - Toronto Business Associates, a division of Maple...Ch. 9 - FreshPak Corporation manufactures two types of...Ch. 9 - Healthful Foods Inc., a manufacturer of breakfast...Ch. 9 - We really need to get this new material-handling...Ch. 9 - City Racquetball Club (CRC) offers racquetball and...Ch. 9 - Patricia Eklund, controller in the division of...Ch. 9 - Jeffrey Vaughn, president of Frame-It Company, was...
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