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Alexxandr [17]
3 years ago
13

Preparing a Direct Materials Purchases Budget Patrick Inc. makes industrial solvents sold in 5-gallon drum containers. Planned p

roduction in units for the first 3 months of the coming year is:
January 43,800
February 41,000
March 50,250
Each drum requires 5.5 gallons of chemicals and one plastic drum container. Company policy requires that ending inventories of raw materials for each month be 15% of the next month's production needs. That policy was met for the ending inventory of December in the prior year. The cost of one gallon of chemicals is $2.00. The cost of one drum is $1.60.
Required:
Calculate the ending inventory of chemicals in gallons for December of the prior year, and for January and February. What is the beginning inventory of chemicals for January? Round your answers to the nearest whole gallon.
Business
1 answer:
user100 [1]3 years ago
5 0

Explanation:

The computation of the ending inventory and the beginning inventory is shown below:

Ending inventory is as follows

December = 438,00 units × 5.5 gallons × 15% =

                 = 36,135 units

January =  41,000× 5.5 gallons × 15%

              = 33,825 units

February = 50,250 units × 5.5 gallons × 15%

               = 41,457 units

And, the beginning inventory for January is December ending inventory i.e 36,135 units

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denpristay [2]

Answer:

The first 40 hours of payment will be payed at $10.5 per which will amount to a total of $420 and his last 5 hours he will be payed at $13 which will amount to a total of $65.

So his total earning for the 45 hours of work are $485

Explanation:

3 0
3 years ago
Which contractual standard for product safety and liability says that buyers chose to make purchases and therefore every purchas
taurus [48]
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NEED HELP ASAP, WILL GIVE BRAINLIEST
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Answer:

develop a plan

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3 0
3 years ago
Read 2 more answers
Describe at least three exchange rate factors that are likely to attract foreign investors to a country's currency. Explain why
lana66690 [7]

Answer: 1. High Interest

2. Low Government Debt

3. Political Stability

Explanation:

Foreign Investors are Investors and investors always like to invest where there are prospects of growth and profit.

High Interest Rates give them the opportunity to invest their money in a currency that will give them a great return because a country where there are high interest rates imparts this on its currency which causes it to rise in value thereby giving currency holders a capital gain.

Another factor is Government Debt. A country with high Government debt will typically be unable to raise funds through the bond market easily. This shortage of funds can lead to inflation which devalues currency causing foreign currency investors to flee.

Finally there is the Political Factor (other factors exist). A stable country politically stands a better chance of maintaining a higher value currency that one with lower political stability. This is because political Stability attracts investors and as more investments come into a country, this reflects in its currency by making it stronger which will attract foreign currency investors.

6 0
4 years ago
Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.
Vesnalui [34]

Answer:

$183,000

Explanation:

Advanced Company

<u>Income Statement for the year -  absorption costing</u>

Sales  ($71 x 21,000 units)     $1,491,000

Less Cost of Sales               ($1,008,000)

Gross Profit                              $483,000

Less Expenses

Operating expenses             ($300,000)

Net Income                              $183,000

where,

Cost of Sales = Units Sold x Product Cost

                      = 21,000 x $48

                      = $1,008,000

Product Cost = all manufacturing costs (absorption costing)

                      = $19 + $21 + $3 + ($175,000 ÷  35,000)

                      = $48

6 0
3 years ago
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