Prepare a direct materials purchases budget

Assignment Help Accounting Basics

Reference no: EM13157426

A company expects to begin the coming year with 6,000 ceramic pots in finished goods inventory. It expects to sell 85,000 ceramic pots and end the year with 8,000 pots in the finished goods inventory. Four pounds of clay go into each ceramic pot. The company expects to have 4,000 pounds of clay on hand at the beginning of the coming year and wishes to end the year with 6,000 pounds in inventory.

1. Prepare a production budget showing the number ceramic pots that the company must manufacture to carry out these plans.

2. Prepare a direct materials purchases budget showing the number of pounds of clay that the company must purchase during the year and the cost of direct materials purchases, given a cost of $2.34 per pound

Reference no: EM13157426

Questions Cloud

Which of following statements about inflammation is false : Which of the following statements about inflammation is FALSE?

Is it normal distribution or compute the normal distribution : The heart rate in beats per minutes of 30 randomly selected students are given below: 78 64 69 75 80 63 70 72 72 68 77 71 74 84 70 62 67 71 69 58 74 70 80 80 63 88 60 68 69 70 71. Is it normal distribution or find the normal distribution.

Company new required rate of return : The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return? (Hint: First calculate the beta, then find the required return.)

Demand for an item is constant : Demand for an item is constant at 1,000 units a year. Unit cost is £50,reorder cost is £100, holding cost is 25 per cent of value a year and no shortages are allowed. Describe an optimal inventory policy for the item.What order size will give a varia..

Prepare a direct materials purchases budget : A company expects to begin the coming year with 6,000 ceramic pots in finished goods inventory. It expects to sell 85,000 ceramic pots and end the year with 8,000 pots in the finished goods inventory. Four pounds of clay go into each ceramic pot. The..

Why is normality assumption not problem for small value of p : Construct a 95 percent confidence interval for the population proportion of positive drug tests. Why is the normality assumption not a problem, despite the very small value of p?

Determine the closest integral number : Imagine that your liver, which has a volume of 2 liters, developed from a single embryonic precursor cell with a volume of 2000 µm3, or 2 x 10-12 liters. How many cell division cycles would be required for the precursor cell to produce your mature..

What is the liquidity premium : the maturity risk premium for all bonds is found with the formula MRP = (t - 1) x 0.1%, where t = number of years to maturity. What is the liquidity premium (LP) on Niendorf s bonds?

Symptoms associated with myocardial infarction : Discuss the sign and symptoms associated with myocardial infarction. How do these symptoms in a male verses female.

User Account

All Pages