1. LULU for the first three months of the coming year. 2. What if Flash Kick wanted a production budget for the two product lines for the month April? What additional information would you need to prepare this budget? OBJECTIVE 2 CORNERSTONE 8.3 Cornerstone Exercise 8.3 Direct Materials Purchases Budget Refer to Cornerstone Exercise 8.2 for the production budgets for practice balls and match balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. Flash Kick's policy is that 20 percent of the following month's production needs for raw materials be in ending inventory. Beginning inventory in Jan uary for all raw materials met this requirement. Required: 1. Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming year. 2. What if Flash Kick decreased the ending inventory percentage to 15 percent of the next month's production needs? What impact would that have on the direct materials purchases budgets prepared in Requirement 1? OBJECTIVE2 CORNERSTONE 8.4 Cornerstone Exercise 8.4 Direct Labor Budget for Service The School of Accounting (SOA) at State University is planning its annual fundraising cam paign for accounting alumni. This year, the SOA is planning a call-a-thon and will ask Dec Alpha Psi members to volunteer to make phone calls to a list of 5.000 alumni. The Dean som has agreed to let Beta Alpha Psi use their offices from 6 p.m. to 9 p.m. each weekday so they will have access to phones. Each volunteer will be provided with a phone and a script 1. LULU for the first three months of the coming year. 2. What if Flash Kick wanted a production budget for the two product lines for the month April? What additional information would you need to prepare this budget? OBJECTIVE 2 CORNERSTONE 8.3 Cornerstone Exercise 8.3 Direct Materials Purchases Budget Refer to Cornerstone Exercise 8.2 for the production budgets for practice balls and match balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. Flash Kick's policy is that 20 percent of the following month's production needs for raw materials be in ending inventory. Beginning inventory in Jan uary for all raw materials met this requirement. Required: 1. Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming year. 2. What if Flash Kick decreased the ending inventory percentage to 15 percent of the next month's production needs? What impact would that have on the direct materials purchases budgets prepared in Requirement 1? OBJECTIVE2 CORNERSTONE 8.4 Cornerstone Exercise 8.4 Direct Labor Budget for Service The School of Accounting (SOA) at State University is planning its annual fundraising cam paign for accounting alumni. This year, the SOA is planning a call-a-thon and will ask Dec Alpha Psi members to volunteer to make phone calls to a list of 5.000 alumni. The Dean som has agreed to let Beta Alpha Psi use their offices from 6 p.m. to 9 p.m. each weekday so they will have access to phones. Each volunteer will be provided with a phone and a script
