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On January 1, 2017, the Hardin Company budget Committee has reached agreement on the following data for the six months ending June 30, 2017. Sales
On January 1, 2017, the Hardin Company budget Committee has reached agreement on the following data for the six months ending June 30, 2017.
Kimmel, Accounting, 6e Gradebook ORION Downloadable eTextbook ent HARDIN COMPANY Direct Materials Budget For the Six Months Ending June 30, 2017 Quarter Six Months Units to be Produced Direct Materials Per Unit Total Pounds Needed for Production ddDesired Ending Direct MM Required LessBeginning Direct Materials otoriet ASon,Inc. All Rights Reserved. A Division of John wilcy & SonsInc re to search oe F1 F2 F3 F4 FS F6 F7 F8 F9 F10 Sales units: first-quarter 5600, second-quarter 6400, third-quarter 7000
Ending raw material inventory: 40% of the next quarters production requirements
Ending finished goods inventory: 25% of the next quarters expected sales units
Third-quarter production: 7440
The ending wrong materials and finished goods inventory at December 31, 2016, follow the same percentage relationships to production and sales that occur in 2017. 5 pounds of raw materials are required to make each unit of finished goods. Ron materials purchased are expected to cost four dollars per pound.
Prepare a direct materials budget by quarters for the six-month period ended June 30, 2017
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