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Magnolia, Inc. manufactures bedding sets. The budgeted production is for 55,000 comforters in 20X2. Each comforter requires 7 yards of material. The estimated January 1, 20X2, beginning inventory is 31,000 yards. The desired ending balance is 30,000 yards of material. If the material costs $4.00 per yard, determine the materials budget for 20X2. Based on above data,
Problem A. Based on the above data, how much of the direct material used?
Problem B. Based on above data, how much of the direct material purchased?
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Compute the balances of the inventory accounts and show how they are disclosed in the financial statements and prepare an income statement for the month ending March 31, 2013. Operating expenses are $44,000 and income tax expense is 20% of income ..
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