1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Deffense [45]
3 years ago
12

Marigold Company’s sales budget projects unit sales of part 198Z of 10,300 units in January, 12,000 units in February, and 13,50

0 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $4 per pound. Marigold Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met on December 31, 2016.
a. Prepare a projected budget for Jan and Feb 2017
b. Prepare a direct material budget for Jan 2017
Business
1 answer:
leonid [27]3 years ago
5 0

Answer:

Production Budget    Jan 10,640        Feb  12,300

Direct Materials Budget    Jan    45216  

Explanation:

Production Budget = Sales + Desired Ending Inventory - Opening Inventory

The ending inventory for one month is the opening inventory for the next. We calculate the ending inventory for

Jan= 20% 0f 12000 units=  2400

Feb = 20% of 13500 units= 2700

Marigold Company

Production Budget

                                         Jan                     Feb            March

Sales Units                     10,300               12000          13500

Add Desired

Ending Inventory            2400                2700

<u>Less Opening                 2060                2400             2700 </u>

<u>Production Budget         10,640              12,300                </u>

<u />

Direct Materials Budget = Production Budget in pounds + Direct Materials Desired Ending Inventory - Opening Inventory Direct Materials

The ending inventory for one month is the opening inventory for the next. We calculate the ending inventory for

Jan= 40% 0f 49,200 units=  19680

Dec = 40% 0f 42,560 units= 17024

Dec Ending Inv= Jan opening Inventory

Marigold Company

Direct Materials Budget

                                                  Jan                     Feb            

Production Units                     10,640               12300  

Pounds per unit                         4                           4

Production pounds                 42,560               49,200    

Add Desired

Ending Inventory                   19,680                  

<u>Less Opening                         17024                    19680         </u>

<u>Direct Materials Budget        45216                                </u>

You might be interested in
The supply curve for oil shows:
12345 [234]
Supply of oil at different prices of other goods.
4 0
3 years ago
Precision Aviation had a profit margin of 7.00%, a total assets turnover of 1.4, and an equity multiplier of 1.8. What was the f
Novosadov [1.4K]

Answer:

17.64%

Explanation:

Precision aviation has a profit margin of 7%

The total assets turnover is 1.4

The equity multiplier is 1.8

Therefore the ROE can be calculated as follows

= Total assets turnover × equity multiplier × profit margin

= 1.4 × 1.8 × 7

= 17.64%

Hence the ROE is 17.64%

7 0
3 years ago
How are dividends and dividends payable reported in the financial statements prepared at december 31
Agata [3.3K]

Answer:

1. Dividends are deducted from the Statement of Retained Earnings as dividend expenses.

2. Dividends payable are reported in the Balance Sheet as current liabilities.

Explanation:

Dividends are distributions to the shareholders from earnings (income) after all expenses and taxes have been deducted from the revenue for the period.  Dividends payable are unpaid dividends, which are reported as current liabilities until they are paid for in the next accounting period.

4 0
2 years ago
EB8.
Stolb23 [73]

Answer:

The fixed costs per unit when 20,000 units are produced are $6.05 per unit.

Explanation:

Fixed costs per unit can be determined by using the following formula:

Fixed costs per unit = Total fixed costs/ number of units are produced

In a company, Total fixed costs do not depend on the level of activity (Fixed costs do not change).

In the company, Total fixed cost = $11 x 11,000 = $121,000

When 20,000 units are produced, Fixed costs per unit = $121,000/20,000 = $6.05 per unit.

3 0
3 years ago
Why beer, wine and liquor may trigger different emotions?
Evgen [1.6K]
Because of there nerves in there brain man o-o
5 0
3 years ago
Other questions:
  • The risk-free rate is 5.4 percent and the market risk premium is 5 percent. Assume that required returns are based on the CAPM.
    14·1 answer
  • A city mandates that all businesses who sell goods and services to the city must pay at least a living wage to their workers tha
    11·1 answer
  • What percent of the money that a typical modern bank invests comes from borrowing?
    10·1 answer
  • What are the cons to raising a minimum wage? ​
    8·2 answers
  • Delaware Coatings Company uses the indirect method to prepare its statement of cash flows. Refer to the following information fo
    8·1 answer
  • Budget information for college athletic programs show that the programs could not exist with receive a significant amount of mon
    9·1 answer
  • What is Homo Sociologicus??
    12·1 answer
  • Explain the most probable reason why the market price of these bonds has declined, even though Clear-Air‘s credit rating has imp
    11·1 answer
  • What are four ethical character traits
    8·1 answer
  • Lower-level managers are empowered to make decisions in a ______ organization, which can ________ motivation and job satisfactio
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!