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omeli [17]
3 years ago
7

SartainC orporation is planning its annual budget and has the following beginning and ending inventory levels planned for the ye

ar.
Beginning Inventory Ending Inventory
Finished goods (units) 22,000 32,000
Raw material (grams) 52,000 42,000

Each unit of finished goods requires 3 grams of raw material. The company plans to sell 170,000 units during the year. How much of the raw material should the company purchase during the year?

a. 552,000 grams
b. 540,000 grams
c. 530,000 grams
d. 582,000 grams
Business
1 answer:
Tanzania [10]3 years ago
7 0

Answer:

c.530,000 grams

Explanation:

Calculation for How much of the raw material should the company purchase during the year

First step is to prepare the Production Budget

PRODUCTION BUDGET

Budgeted unit sales 170,000

Add desired ending finished goods inventory

32,000

Total 202,000

(170,000+32,000)

Less beginning finished goods inventory (22,000)

Required production in units 180,000

(202,000-22,000)

Second step is to prepare Materials Budget

MATERIALS BUDGET

Raw materials required for production 540,000

(180,000*3 grams)

Add desired ending finished goods inventory

42,000

Total raw materials needed 582,000

(540,000+42,000)

Less beginning finished goods inventory (52,000)

Required material purchases 530,000 grams

(582,000-52,000)

Therefore the amount of the raw material that the company should purchase during the year is $530,000 grams

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Explanation:

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Since in the question it is mentioned that Daniel feels that if he worked with his new manager so there would be the high chances of stronger emotional bond due to this he is more engage with the work

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3 years ago
At Schwinn, managers of various new departments in the company were told, "Go out and shape the department the way you feel is b
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Answer:

Free-rein Leadership

Explanation:

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3 years ago
"An expenditure made in connection with a machine being used by a company to produce inventory should be expensed immediately if
Ipatiy [6.2K]

Answer:

True

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4 0
3 years ago
In the month of November Marigold Corp. wrote checks in the amount of $43300. In December, checks in the amount of $59239 were w
yanalaym [24]

Answer:

$11,977

Explanation:

The difference between the balance of the total checks written and balance of the total checks presented for withdrawal gives the amount outstanding.

As such, amount of outstanding checks at the end of December is the net of the balance of the checks written in November and December and the balance of the checks presented in the same period.

This is

= $43300 + $59239 - $39630 - $50932

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4 0
3 years ago
Read 2 more answers
Mercury Inc. purchased equipment in 2019 at a cost of $400,000. The equipment was expected to produce 700,000 units over the nex
Wittaler [7]

Answer:

See explanation section

Explanation:

We know,

Annual depreciation rate under Units-of-production = Depreciable amount/Overall (expected) production

Given,

Purchase value = $400,000

Residual value = $50,000

Expected production = 700,000 units

Depreciable Amount = $(400,000 - 50,000) = $350,000

Annual depreciation rate = $350,000/700,000

Depreciation rate = $0.50

Thrrefore, Accumulated depreciation from 2019 to 2021 = (100,000 + 160,000 + 80,000)*$0.50

= $170,000

We know, Book value of asset = Cost price - Accumulated depreciation

Book value = $400,000 - $170,000 = $230,000

Again, Loss on sale of equipment = Book value - Sales price

Loss on sale of equipment = $230,000 - $210,000

Loss on sale of equipment = $20,000

The journal entry to record the sale =

Debit Cash $210,000

Debit Accumulated Depreciation $170,000

Debit Loss on sale $20,000

Credit Equipment $400,000

7 0
3 years ago
Read 2 more answers
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