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viktelen [127]
3 years ago
14

Yem expects to produce 1 comma 750 units in January and 2 comma 120 units in February. The company budgets 5 pounds per unit of

direct materials at a cost of $ 45 per pound. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account​ (all direct​ materials) on January 1 is 5 comma 300 pounds. Yem desires the ending balance in Raw Materials Inventory to be 40​% of the next​ month's direct materials needed for production. Desired ending balance for February is 4 comma 000 pounds. Prepare Yem​'s direct materials budget for January and February.
Business
1 answer:
Vladimir [108]3 years ago
6 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

Production:

January= 1,750 units

February= 2,120 units

The company budgets 5 pounds per unit of direct materials at a cost of $ 45 per pound.

Beginning inventory= 5,300 pounds.

Desired ending inventory= 40​% of the next​ month's direct materials needed for production.

The desired ending balance for February is 4,000 pounds.

The purchases of direct material are calculated using the following formula:

Purchases= sales + desired ending inventory - beginning inventory

January (in pounds):

Production= 1,750*5= 8,750

Desired ending inventory= (2,120*5)*0.4= 4,240

Beginning inventory= (5,300)

Total purchase= 7,690 pounds

Total cost= 7,690*45= $346,050

February (in pounds):

Production= 2,120*5= 10,600

Desired ending inventory= 4,000

Beginning inventory= (4,240)

Total purchase= 10,360 pounds

Total cost= 10,360*45= $466,200

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Answer:

Thus, difference in gross profit = $144 + $144 = $288

Profit as per FIFO is higher than profit as per LIFO

Explanation:

In the given case, as per both the methods computation shall be as follows:

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Mar 1                     22 units                   $29                 $638

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That means sales = 94 - 18 = 76 units

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Answer and Explanation:

Artists' lives have been changed by digital technology. This has created different schools of thought such as the "winner take all" theory, which claims that delivering high quality products at low cost will create a world where small differences in talent demand large differences in reward, and the "long tail"  theory, who claims that digital technology is creating a small portion of sellers that the market will adapt to, promoting low-cost products. These two theories are effective in different realities. However, the existence of both proves the change that programming and technology has been showing in entertainment and in the market.

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Answer:

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