Question about direct materials budget

Assignment Help Accounting Basics

Reference no: EM13115481

Micro Products, Inc., has developed a very powerful electronic calculator. Each calculator requires three small "chips" that cost $2 each and are purchased from an overseas supplier. Micro Products has prepared a production budget for the calculator by quarters for Year 2 and for the first quarter of Year 3. as shown below:

YEAR 2 YEAR 3
First Second Third Fourth First

Budgeted Production 60,000 90,000 100,000 80,000
in Calculators

The chip used in production of the calculator is sometimes hard to get, so it is necessary to carry a large inventories as a precaution against stockouts. For this reason, the inventory of chips at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 36,000 chips will be on hand to start the first quarter of Year 2.

Prepare a direct materials budget for chips, by quarter and in total, for Year 2. At the bottom of your budget, show the dollar amount of purchases foe each quarter and for the year in total.

Reference no: EM13115481

Questions Cloud

What is the concentration of a nitric acid solution : what is the concentration of a nitric acid solution if a 10.00ml sample of the acid reqires 31.25ml of 0.135m koh for neutralization.

Find probabilty that man has mean greater than a inches : Height of men have a mean of 69.6 inches and standard Dev of 2.8 inches. If 64 men are randomly seleted, find the probabilty that they have a mean greater than 70.6 inches.

What is the best general explanation for how this occurs : Many infectious diseases are becoming difficult to treat because of bacterial resistance to antibiotics. Populations of bacteria can become resistant when they are exposed to an antibiotic. What is the best general explanation for how this occurs?

Explain financial operations for a manufacturing firm : Break-even point You are a hard-working analyst in the office of financial operations for a manufacturing firm that produces a single product.

Question about direct materials budget : Prepare a direct materials budget for chips, by quarter and in total, for Year 2. At the bottom of your budget, show the dollar amount of purchases foe each quarter and for the year in total.

Illustrate what is the speed at which the satellite travels : A satellite is in a circular orbit about the earth (ME = 5.98 × 1024 kg). The period of the satellite is 1.20 × 104 s. Illustrate what is the speed at which the satellite travels?

Calculate the final volume : Consider an experimental run at 273 rm K where the initial number of moles (n_1) is actually 1.00 rm mol, and the final number of moles (n_2) is 2.00 rm mol.

Information about 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.

How many nucleotide positions of the human genome : If the coding fraction (that in exons) of the human genome is 1.5% of the total and there are 21,000 protein-coding genes (assumed to be equally long), how many nt differentiate that exonic fraction?

User Account

All Pages