Handley Industrial has estimated that production for the next five quarters will be Production Information 1st quarter, 2017 42,000 units 2nd quarter, 2017 38,000 units 3rd quarter, 2017 45,000 units 4th quarter, 2017 37,000 units 1st quarter, 2018 44,000 units Finished units of production require 6 pounds of raw material per unit The raw material cost is $5 per pound There is $214,200 of raw material on hand at the beginning of the first quarter, 2017 Handley desires to have 17 percent of next quarter's material requirements on hand at the end of each quarter Prepare quarterly direct materials purchases budgets for Handley Industrial for 2017 Handley Industrial Direct Materials Purchases Budget For the Year Ending December 31, 2017 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Units to be produced Cost of raw material per unit Cost of raw material needed for production Required raw material purchases Desired ending inventory of raw material Total material needed Beginning inventory of raw material Units to be produced Beginning inventory of raw material Cost of raw material per unit Desired ending inventory of raw material Total material needed Required raw material purchases Cost of raw material needed for production $ $ $ $ $ Cost of raw material per unit Total material needed Desired ending inventory of raw material Beginning inventory of raw material Required raw material purchases Units to be produced Cost of raw material needed for production AddLess Desired ending inventory of raw material Total material needed Beginning inventory of raw material Cost of raw material per unit Required raw material purchases Cost of raw material needed for production Units to be produced Total material needed Required raw material purchases Beginning inventory of raw material Desired ending inventory of raw material Cost of raw material needed for production Units to be produced Cost of raw material per unit AddLess Required raw material purchases Total material needed Beginning inventory of raw material Units to be produced Cost of raw material needed for production Cost of raw material per unit Desired ending inventory of raw material Cost of raw material per unit Total material needed Units to be produced Desired ending inventory of raw material Beginning inventory of raw material Required raw material purchases Cost of raw material needed for production $ $ $ $ $

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Posted on Sep 16, 2024

Handley Industrial has estimated that production for the next five quarters will be: Production Information 1st quarter, 2017 42,000 units 2nd quarter, 2017 38,000 units

Handley Industrial has estimated that production for the next five quarters will be:

Production Information
1st quarter, 2017		42,000 units
2nd quarter, 2017		38,000 units
3rd quarter, 2017		45,000 units
4th quarter, 2017		37,000 units
1st quarter, 2018		44,000 units

Finished units of production require 6 pounds of raw material per unit. The raw material cost is $5 per pound. There is $214,200 of raw material on hand at the beginning of the first quarter, 2017. Handley desires to have 17 percent of next quarter's material requirements on hand at the end of each quarter. Prepare quarterly direct materials purchases budgets for Handley Industrial for 2017.

Handley Industrial Direct Materials Purchases Budget For the Year Ending December 31, 2017
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year
Units to be produced/Cost of raw material per unit/Cost of raw material needed for production/Required raw material purchases/Desired ending inventory of raw material/Total material needed/Beginning inventory of raw material
Units to be produced/Beginning inventory of raw material/Cost of raw material per unit/Desired ending inventory of raw material/Total material needed/Required raw material purchases/Cost of raw material needed for production	$	$	$	$	$
Cost of raw material per unit/Total material needed/Desired ending inventory of raw material/Beginning inventory of raw material/Required raw material purchases/Units to be produced/Cost of raw material needed for production
AddLess : Desired ending inventory of raw material/Total material needed/Beginning inventory of raw material/Cost of raw material per unit/Required raw material purchases/Cost of raw material needed for production/Units to be produced
Total material needed/Required raw material purchases/Beginning inventory of raw material/Desired ending inventory of raw material/Cost of raw material needed for production/Units to be produced/Cost of raw material per unit
AddLess : Required raw material purchases/Total material needed/Beginning inventory of raw material/Units to be produced/Cost of raw material needed for production/Cost of raw material per unit/Desired ending inventory of raw material
Cost of raw material per unit/Total material needed/Units to be produced/Desired ending inventory of raw material/Beginning inventory of raw material/Required raw material purchases/Cost of raw material needed for production	$	$	$	$	$