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defon
3 years ago
11

Budgeting material purchases budget. The Howell Company has prepared a sales budget of 42,000 finished units for a 3- month peri

od. The company has an inventory of 11,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 13,000 units at the end of the succeeding quarter. It takes 4 gallons of direct materials to make one unit of finished product. The company has an inventory of 66,000 gallons of direct materials at December 31 and has a target ending inventory of 56,000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Howell Company purchase during the 3 months ending March 31?
Business
1 answer:
tangare [24]3 years ago
4 0

Answer:

The number of Gallon materials Howell company should buy is 166000 Gallons

Explanation:

Finished goods

opening inventory               11000

produced                                            

closing inventory                13000

finished goods sold            42000

using the bottom up approach to get goods produced

sold goods + closing goods - opening goods = produced =44000 goods

Direct material ( Gallons)

opening materials                  66000

purchased                             166000              

available for use                   232000

used in production                 176000

closing gallons                       56000

We use the bottom up approach to get the materials to be purchased

closing stock plus used in production to get available for use then subtract opening material to get purchased = 166000

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The standard cost of product 777 includes 2.0 units of direct materials at $6.00 per unit. During August, the company bought 29,
AfilCa [17]

Answer and Explanation:

The computation is shown below:

Total material variance = Actual quantity × Actual rate - Standard quantity × Standard rate

= 29000 × $6.3 - (16,000 units × 2) × $6

= $182,700 - $192,000

= - $9,300 favorable  

Material price variance = Actual quantity × Actual price - Actual quantity × Standard price

= (29,000 units × $6.3) - (29,000 units × $6)

= $182,700 - $174,000

= $8,700 unfavorable  

Material quantity variance =  Standard quantity × Actual quantity - Standard rate × Standard quantity  

= $6 × 29,000 units - $6 × (16,000 units × 2)

= $174,000 - $192,000

= -$18,000 favorable

The favorable is when the standard cost is more than the actual one while the unfavorable is when the standard cost is less than the actual one

8 0
3 years ago
The best business writing is purposeful, economical, and ________. a. feelings oriented b. technical c. revenue driven d. audien
alexgriva [62]

Answer: (D) Audience oriented

Explanation:

 The effective business writing is should be economical, audience oriented and also purposeful to the public so that we can easily explain about the main objective of the topic.

The importance of the business writing is that  it helps in providing the strengthening of our organization and also build good communication with the consumers.

The audience oriented is one of the efficient communication with the audience where the speaker use their skills such as content and language for explaining bout the topic purpose in front of audience.

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4 0
3 years ago
What vendor selection criteria are described by vendor attitude, cultural compatibility, training aids, packaging, and repair se
BlackZzzverrR [31]

Answer:

a.capability

Explanation:

Based on the information provided within the question it can be said that the vendor selection criteria described is their capability. This basically describes what the vendor is "capable" of providing to the customer in order to serve as a "value" to the vendor's store and bring in more customers that pay for those services.

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2 years ago
Louvers, Inc., accepted a $15,000, 180-day, 10 percent note from a customer on May 31. On June 30, Louvers prepared a period-end
g100num [7]

Answer:

November 27

Dr Cash $15,750

Cr Interest Revenue $625

Cr Interest Receivable $125

Cr Notes Receivable for $15,000

Explanation:

Preparation for the necessary November 27 entry

November 27

Dr Cash $15,750

[$15,000+($15,000 × 10% × 180/360) ]

($15,000 + $750=$15,750)

Cr Interest Revenue $625

( $15,000 × 10% × 150/360),

Cr Interest Receivable $125

Cr Notes Receivable for $15,000

Note that between the month of June 30 and November 27 we would have a total of 150 days

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3 years ago
What does full disclosure mean? how does full disclosure affect financial reporting? are there any ethical implications to what
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Full Disclosure basically means that they are going to share all the information of an event that has happened. You should make these into separate questions and you may get quicker answers, because unfortunately I am unable to help you with all of them.
8 0
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