Exercise 9-6 (Video)

On January 1, 2020, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020.

Sales units:First quarter 5,000; second quarter 6,000; third quarter 7,000.

Ending raw materials inventory:40% of the next quarters production requirements.

Ending finished goods inventory:25% of the next quarters expected sales units.

Third-quarter production:7,200 units.

The ending raw materials and finished goods inventories at December 31, 2019, follow the same percentage relationships to production and sales that occur in 2020. 3 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound.

Prepare a production budget by quarters for the 6-month period ended June 30, 2020. HARDIN COMPANY Production Budget

For the Six Months Ending June 30, 2020For the Quarter Ending June 30, 2020June 30, 2020

Quarter

1

2

Six Months

Desired Ending Finished Goods UnitTotal Materials RequiredDirect Materials Per UnitDirect Materials PurchasesBeginning Direct MaterialsExpected Unit SalesRequired Production UnitsTotal Required UnitsBeginning Finished Goods UnitDesired Ending Direct Materials

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Total Materials RequiredDirect Materials Per UnitDirect Materials PurchasesBeginning Direct MaterialsDesired Ending Finished Goods UnitDesired Ending Direct MaterialsExpected Unit SalesRequired Production UnitsTotal Required UnitsBeginning Finished Goods Unit

Expected Unit SalesBeginning Finished Goods UnitRequired Production UnitsTotal Materials RequiredTotal Required UnitsDirect Materials PurchasesBeginning Direct MaterialsDesired Ending Direct MaterialsDesired Ending Finished Goods UnitDirect Materials Per Unit

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Total Required UnitsDesired Ending Direct MaterialsBeginning Finished Goods UnitDesired Ending Finished Goods UnitTotal Materials RequiredBeginning Direct MaterialsDirect Materials Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production Units

Direct Materials Per UnitDirect Materials PurchasesTotal Required UnitsRequired Production UnitsBeginning Finished Goods UnitDesired Ending Direct MaterialsBeginning Direct MaterialsExpected Unit SalesTotal Materials RequiredDesired Ending Finished Goods Unit

Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2020. HARDIN COMPANY Direct Materials Budget

For the Six Months Ending June 30, 2020June 30, 2020For the Quarter Ending June 30, 2020

Quarter

1

2

Six Months

Cost Per PoundDirect Materials PurchasesUnits to be ProducedDirect Materials Per UnitDesired Ending Direct Materials (Pounds)Total Cost of Direct Materials PurchasesTotal Materials RequiredTotal Required Direct Labor HoursDirect Labor Cost Per HourTotal Direct Labor CostDirect Labor Time Per UnitTotal Pounds Needed for ProductionBeginning Direct Materials (Pounds)

Total Direct Labor CostDirect Materials PurchasesTotal Cost of Direct Materials PurchasesDesired Ending Direct Materials (Pounds)Total Materials RequiredDirect Materials Per UnitBeginning Direct Materials (Pounds)Cost Per PoundTotal Pounds Needed for ProductionTotal Required Direct Labor HoursUnits to be ProducedDirect Labor Time Per UnitDirect Labor Cost Per Hour

Units to be ProducedCost Per PoundTotal Materials RequiredBeginning Direct Materials (Pounds)Desired Ending Direct Materials (Pounds)Direct Labor Cost Per HourDirect Labor Time Per UnitTotal Pounds Needed for ProductionDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Required Direct Labor HoursTotal Direct Labor Cost

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Direct Materials Per UnitTotal Pounds Needed for ProductionUnits to be ProducedDirect Labor Time Per UnitTotal Materials RequiredBeginning Direct Materials (Pounds)Total Cost of Direct Materials PurchasesCost Per PoundDesired Ending Direct Materials (Pounds)Direct Labor Cost Per HourTotal Direct Labor CostDirect Materials PurchasesTotal Required Direct Labor Hours

Total Pounds Needed for ProductionTotal Required Direct Labor HoursTotal Cost of Direct Materials PurchasesTotal Materials RequiredUnits to be ProducedTotal Direct Labor CostBeginning Direct Materials (Pounds)Cost Per PoundDirect Labor Cost Per HourDesired Ending Direct Materials (Pounds)Direct Labor Time Per UnitDirect Materials PurchasesDirect Materials Per Unit

AddLess

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Direct Labor Cost Per HourBeginning Direct Materials (Pounds)Direct Labor Time Per UnitCost Per PoundDirect Materials Per UnitDesired Ending Direct Materials (Pounds)Direct Materials PurchasesTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Direct Labor CostTotal Required Direct Labor HoursUnits to be Produced

Desired Ending Direct Materials (Pounds)Direct Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesTotal Pounds Needed for ProductionDirect Materials Per UnitTotal Required Direct Labor HoursUnits to be ProducedTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredBeginning Direct Materials (Pounds)Cost Per Pound

Direct Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesDirect Labor Cost Per HourTotal Direct Labor CostTotal Materials RequiredTotal Pounds Needed for ProductionBeginning Direct Materials (Pounds)Cost Per PoundTotal Required Direct Labor HoursUnits to be ProducedDesired Ending Direct Materials (Pounds)

$$

Units to be ProducedTotal Direct Labor CostTotal Materials RequiredTotal Pounds Needed for ProductionDesired Ending Direct Materials (Pounds)Total Required Direct Labor HoursCost Per PoundDirect Materials PurchasesBeginning Direct Materials (Pounds)Direct Labor Cost Per HourDirect Labor Time Per UnitDirect Materials Per UnitTotal Cost of Direct Materials Purchases

$$$