Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Direct Materials Purchases Budget Smart Strike Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart Strike's best selling

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Direct Materials Purchases Budget Smart Strike Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart Strike's best selling lines are the practice talline (durable soccer balls for training and practice) and the match ball tine (high-performance soccer balls used in games). In the first four months of next year, Smart Strike expects to sell the following: Practice Balls Match Balls Units Selling Price Selling Price January 50,000 $12 7,000 $25 February 58,000 $12 7,500 325 March 80,000 $12 13,000 $25 April 100,000 $12 18,000 $25 Units Smart Strike requires ending inventory of product to equal 25 percent of the next month's unit sales. Beginning inventory in January was 2,400 practice soccer balls and 400 match soccer 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 Smart Strike's policy is that 10 percent of the following month's production needs for raw materials be in ending inventory, Beginning inventory in January for all raw materiais met this requirement. Required: 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. It required, round your answers to the nearest cent. 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. If required, round your answers to the nearest cent. HINT: Units Produced - Expected Sales + Desired Ending Inventory - Beginning Inventory Direct materials purchases budget for polyvinyl chloride panels: Smart Strike Company Direct Materials Purchases Budget - Polyvinyl Chloride Panels For January and February Polyvinylchloride panels: January February Units produced Direct materials for production Total needed Direct materials purchases - Direct materials purchases budget for bladder and valve: Smart Strike Company Direct Materials Purchases Budget - Bladder and Valve For January and February Bladder and valve: January February Units produced 001 Direct materials for production 1000000 Total needed Direct materials purchases Direct materials purchases budget for glue: Smart Strike Company Direct Materials Purchases Budget - Glue For January and February Glue: January February Units produced Direct materials for production bo Total needed Direct materials purchases

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

Fraud examination

Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma

4th edition

538470844, 978-0538470841

More Books

Students also viewed these Accounting questions

Question

Explain the difference between SQC and SPC.

Answered: 1 week ago