User Account

All Pages

Production and purchases budgets

Assignment Help Managerial Accounting
Reference no: EM13912512

Production and purchases budgets. Osage Inc. has actual sales for May and June and forecast sales for July, August, September, and October as follows:

Actual:
May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,900 units
June . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,200 units

Forecast:
July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000 units
August . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,800 units
September . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,600 units
October . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,700 units

Required:

a. The firm's policy is to have finished goods inventory on hand at the end of the month that is equal to 70% of the next month's sales. It is currently estimated that there will be 4,400 units on hand at the end of June. Calculate the number of units to be produced in each of the months of July, August, and September.
b. Each unit of finished product requires 6.5 pounds of raw materials. The firm's policy is to have raw material inventory on hand at the end of each month that is equal to 60% of the next month's estimated usage. It is currently estimated that 26,000 pounds of raw materials will be on hand at the end of June. Calculate the number of pounds of raw materials to be purchased in each of the months of July and August.

Reference no: EM13912512

Questions Cloud

Manufacturing overhead : High Desert Potteryworks makes a variety of pottery products that it sells to retailers such as Home Depot-The company uses a job-order costing system in which predetermined overhead rates are used to apply manufacturing overhead cost to jobs
In addition to the information presented in mini exercises : In addition to the information presented in Mini Exercises 14.1 and 14.2, ABC Company currently pays a standard rate of $1 per pound for raw materials.
Calculate the number of units of product : Gillman Co. is forecasting sales of 62,000 units of product for August. To make one unit of finished product, 5 pounds of raw materials are required.
What are different criteria for recognizing revenue : What are different criteria for recognizing revenue and Why are there so many revenue recognition methods?
Production and purchases budgets : Production and purchases budgets. Osage Inc. has actual sales for May and June and forecast sales for July, August, September, and October as follows:
What is current environment regarding revenue recognition : What is the current environment regarding revenue recognition? When is revenue usually recognized? What conditions should exist for the recognition at date of sale for all or part of the revenue and income from the sale transaction? When is revenu..
Calculate the estimated cash receipts for september : Cash receipts budget. Scottsdale Co. has actual sales for July and August and forecast sales for September, October, November, and December as follows:
When do accountants recognize revenue : Depreciation is cost allocation not valuation and accumulated depreciation is a sum of cash being accumulated for the replacement of fixed assets. Do you agree? Explain your answer?
Lakeway manufacturing company manufactures and sells : Lakeway Manufacturing Co. manufactures and sells household cleaning products.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd