Prepare the company direct materials budget

Assignment Help Accounting Basics

Reference no: EM132649536

Problem - The marketing department of Gaeber Industries has submitted the following sales forecast for the upcoming fiscal year: 1at0uartor 2ndOuarhr SrdQuartar 4010mm Budgeted unit sales 8,000 T000 6,000 7,000 The company expects to start the first quarter with 1,600 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending ?nished goods inventory for the fourth quarter is 1,700 units. In addition, the beginning raw materials inventory for the ?rst quarter is budgeted to be 3,120 pounds and the beginning accounts payable for the first quarter is budgeted to be $14,820. Each unit requires 2 pounds of raw material that costs $4.00 per pound. Management desires to end each quarter with an inventory of raw materials equal to 20% of the following quarter's production needs. The desired ending inventory for the fourth quarter is 3,140 pounds. Management plans to pay for 75% of raw material purchases in the quarter acquired and 25% in the following quarter.

Required -

1. Prepare the company's production budget for the upcoming ?scal year.

2. Prepare the company's direct materials budget and schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year.

Reference no: EM132649536

Questions Cloud

Identify and explain three industry specific factors : Identify and explain three industry specific factors that are important to properly understanding Zeus Ltd and its environment and assessing risk

What are the strategies you would have implemented : One of the best traits of a leader is being able to recognize that there is always room for improvement. Change can be hard and sometimes even harder when.

Make a transaction for stillwater designs : Make a transaction for Stillwater Designs. Stillwater Designs expanded its market by becoming an original equipment supplier to Jeep Wrangler.

Effectiveness for several familiar leadership roles : The purpose of this assignment is to examine similarities and differences in characteristics of effectiveness for several familiar leadership roles.

Prepare the company direct materials budget : Prepare the company's direct materials budget and schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year

Can possible that the number of units transferred out : Can possible that the number of units transferred out can not exceed the number of units started this period? Explain in detail with an example.

Define how practicum experience relates to healthy people : A personal, introspective subjective account of your practicum experience and how your practicum experience relates to Healthy People 2020 and course objectives

Should stoner make or buy component : Should Stoner make or buy Component 3? Explain the relevant factors influencing your decision. Stoner Company uses three different components(materials)

Prepare quarterly production budget : Productions and related Budgets - Prepare quarterly production budget, in units only, for the March, June and September quarters for 2014

User Account

All Pages