Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Babu Enterprise sells packaged baby foods for $60/unit and is preparing budget for the 1st quarter of 2020. His actual and budgeted data include: Details

Babu Enterprise sells packaged baby foods for $60/unit and is preparing budget for the 1st quarter of 2020. His actual and budgeted data include: Details . . . . . . . . . . . . Nov 2019 . . . Dec 2019 . . . Jan 2020 . . . Feb 2020 . . . Mar 2020 . . . Apr 2020 . . . May 2020 Production in units . . . . . 5600 . . . . . . 8500 . . . . . . 4200 . . . . . . 5200 . . . . . . . 6200 . . . . . . 5400 . . . . . . 6200 Each unit of product requires 20 kilograms of raw materials to produce. And Babu keeps an ending inventory of raw materials equal to 40% of the following months production needs of raw materials. The price of raw material is $2/kilogram. An advance payment of 40% is to be made a month prior to purchase. 10% is paid in the month of purchase. The rest is paid in the month following purchase. Instructions: For the 1st quarter of 2020 answer, on your rough-copy/notebook prepare (A) Direct Materials Budget and then answer the following questions: (a) The production needs of January was _________ kilogram. unanswered

(b) The ending inventory of raw materials in February was _________ kilogram. unanswered

(c) The ending inventory of raw materials for the 1st quarter of 2020 was _________ kilogram. unanswered

(d) The purchases of raw materials in kilogram for the month of February is _________ kilogram. unanswered

(e) The purchases of raw materials in $ for the month of January is $_____________ unanswered

(f) The purchases of raw materials in $ for the 1st quarter of 2020 is $_____________ unanswered

(g) [2 marks] The amount of accounts payable at the end of the 1st quarter of 2020 is $_____________ unanswered

Submit

You have used 0 of 1 attemptSome problems have options such as save, reset, hints, or show answer. These options follow the Submit button.

SaveSave Your Answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Using Financial Accounting Information The Alternative to Debits and Credits

Authors: Gary A. Porter, Curtis L. Norton

7th Edition

978-0-538-4527, 0-538-45274-9, 978-1133161646

Students also viewed these Accounting questions