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expeople1 [14]
3 years ago
12

Pablo Company has budgeted production for next year as follows:QuarterFirst Second Third FourthProduction in units 48,000 88,000

98,000 78,000Three pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 38,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:72,500 pounds.330,000 pounds.271,500 pounds.337,500 pounds.
Business
1 answer:
Margaret [11]3 years ago
5 0

Answer:

271,500 pounds

Explanation:

Given:

Quarter                               FIRST      SECOND     THIRD     FOURTH

Production in unit                  48000     88000        98000      78000

Raw material per unit               3               3                 3                 3

=================================================================

Thus,

Need for material  = Production in unit × Raw material per unit

=================================================================

Quarter                                         FIRST      SECOND     THIRD     FOURTH

Need for material in production  144,000   264,000     294,000     234,000

Desired ending inventory = 25% of next quarter's production needs for material

==================================================================

ADD:

Desired ending inventory             66000       73500      58500  

==================================================================

Total need of material = Need for material in production + Desired ending inventory

==================================================================

Quarter                               FIRST      SECOND     THIRD      FOURTH

Total need of material =       210,000    337,500     352,500  

Beginning inventory             38000  66000       73500  

==================================================================

Total purchase = Total need of material - Beginning inventory

==================================================================

Quarter                               FIRST      SECOND     THIRD      FOURTH

Total purchase =                   172,000     271,500      279,000

Hence,

The answer is  271,500 pounds

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Given the acquisition cost of product ALPHA is $24, the net realizable value for product ALPHA is $23, the normal profit for pro
Novay_Z [31]

Answer:

$22

Explanation:

Given that,

Acquisition cost of product ALPHA = $24

Net realizable value for product ALPHA = $23

Normal profit for product ALPHA = $1.00

Market value (replacement cost) for product ALPHA = $21

By applying LCM, the per unit inventory value is determined by deducting the normal profit from the Net realizable value for product.

Per unit inventory value:

= Net Realizable Value - Normal Profit

= $23 - $1.00

= $22

Therefore, the proper per unit inventory value for product ALPHA applying LCM is $22.00.

4 0
3 years ago
The _____ Act established strict accounting and reporting rules to make senior managers more accountable and to improve and main
MrMuchimi

Answer:

Sarbanes Oxley

Explanation:

The Sarbanes Oxley act was passed in 2002 by the US congress to ensure that senior managers are more accountable by establishing strict accounting and reporting rules.

The Sarbanes Oxley Act created and gave powers to the Public Company Accounting Oversight Board to overlook the activities of the accounting industry. The Act also bans company executives from accessing loans.

Cheers.

4 0
3 years ago
of inventory can absorb variations in flow rates by acting as a source of supply for a downstream step.
Vanyuwa [196]

Buffer of inventory can absorb variations in flow rates by acting as a source of supply for a downstream step.

<h3>What is a buffer?</h3>
  • In manufacturing, a buffer is used to account for fluctuations in the production process. Consider a buffer as a means to guarantee that your production line will continue to function normally even if unexpected circumstances arise.
  • Having enough supplies on hand to ensure smooth operations is one example of a buffer in manufacturing. To help stabilize any fluctuations they encounter with their supply and demand chains, production capabilities, and lead times, manufacturers will often keep inventories of the raw materials and supplies needed for production on hand, as well as occasionally inventories of finished goods awaiting shipment.
  • Without the proper buffers, manufacturing procedures may sluggish, which would result in more costs and lower profitability.

To know more about buffer with the given link

brainly.com/question/19093015

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8 0
1 year ago
Large purchased all of Small's voting stock for $11 million when Small's total owners' equity was $4 million. The book value and
hoa [83]

Answer:

The amount of goodwill that is recorded by Large is $5 million

Explanation:

Goodwill is the excess of price consideration paid to acquire controlling stake in a company over the fair value of the company's net assets.

Net assets in the sense implies the fair value of total assets less fair value of liabilities.

Fair value of total assets is $9 million

Fair value of liabilities    is $3 million

As a result net assets upon acquisition  is $6 million($9 million less $3 million)

Since the consideration paid in acquiring Small's voting stake is $11 million, goodwill is $5 million($11 million less $6 million).

The $ 5 million is the excess of purchase consideration over the fair value of Small's net assets as at the date of acquisition

8 0
3 years ago
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C industry based certificate
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