Question
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
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 5,400; second quarter 6,100; third quarter 7,900. | |
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: | 7,430 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. 5 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $6 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, 2020June 30, 2020For the Quarter Ending June 30, 2020 | ||||||
Quarter | ||||||
1 | 2 | Six Months | ||||
Required Production UnitsDirect Materials Per UnitDesired Ending Direct MaterialsTotal Materials RequiredDirect Materials PurchasesTotal Required UnitsExpected Unit SalesDesired Ending Finished Goods UnitBeginning Finished Goods UnitBeginning Direct Materials | ||||||
AddLess: Direct Materials PurchasesTotal Required UnitsExpected Unit SalesDesired Ending Direct MaterialsTotal Materials RequiredDirect Materials Per UnitRequired Production UnitsBeginning Finished Goods UnitBeginning Direct MaterialsDesired Ending Finished Goods Unit | ||||||
Total Required UnitsExpected Unit SalesBeginning Direct MaterialsBeginning Finished Goods UnitDirect Materials Per UnitDirect Materials PurchasesRequired Production UnitsTotal Materials RequiredDesired Ending Finished Goods UnitDesired Ending Direct Materials | ||||||
AddLess: Desired Ending Finished Goods UnitBeginning Finished Goods UnitTotal Required UnitsDirect Materials Per UnitRequired Production UnitsBeginning Direct MaterialsExpected Unit SalesDesired Ending Direct MaterialsDirect Materials PurchasesTotal Materials Required | ||||||
Desired Ending Direct MaterialsDirect Materials PurchasesTotal Required UnitsBeginning Direct MaterialsRequired Production UnitsDirect Materials Per UnitDesired Ending Finished Goods UnitTotal Materials RequiredBeginning Finished Goods UnitExpected Unit Sales |
eTextbook and Media
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 PoundUnits to be ProducedDirect Materials PurchasesTotal Direct Labor CostTotal Materials RequiredDesired Ending Direct Materials (Pounds)Direct Labor Time Per UnitTotal Pounds Needed for ProductionTotal Required Direct Labor HoursTotal Cost of Direct Materials PurchasesDirect Materials Per UnitBeginning Direct Materials (Pounds)Direct Labor Cost Per Hour | |||||||
Total Materials RequiredTotal Required Direct Labor HoursDirect Labor Cost Per HourDirect Labor Time Per UnitCost Per PoundDesired Ending Direct Materials (Pounds)Direct Materials PurchasesTotal Direct Labor CostTotal Pounds Needed for ProductionUnits to be ProducedBeginning Direct Materials (Pounds)Total Cost of Direct Materials PurchasesDirect Materials Per Unit | |||||||
Direct Materials Per UnitTotal Materials RequiredDesired Ending Direct Materials (Pounds)Total Pounds Needed for ProductionCost Per PoundBeginning Direct Materials (Pounds)Direct Labor Cost Per HourTotal Required Direct Labor HoursTotal Cost of Direct Materials PurchasesDirect Labor Time Per UnitTotal Direct Labor CostDirect Materials PurchasesUnits to be Produced | |||||||
AddLess: Units to be ProducedDirect Labor Cost Per HourDirect Materials PurchasesTotal Required Direct Labor HoursTotal Materials RequiredTotal Cost of Direct Materials PurchasesDirect Materials Per UnitDesired Ending Direct Materials (Pounds)Cost Per PoundBeginning Direct Materials (Pounds)Total Pounds Needed for ProductionTotal Direct Labor CostDirect Labor Time Per Unit |
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