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 5,300; second quarter 6,000; third quarter 7,800. | |
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: | 7,360 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 direct materials budget by quarters for the 6-month period ended June 30, 2020.
HARDIN COMPANY Direct Materials Budget For the Quarter Ending June 30, 2020For the Six Months Ending June 30, 2020June 30, 2020 | |||||||
Quarter | |||||||
1 | 2 | Six Months | |||||
Direct Labor Cost Per HourDesired Ending Direct Materials (Pounds)Cost Per PoundTotal Pounds Needed for ProductionBeginning Direct Materials (Pounds)Total Direct Labor CostDirect Materials Per UnitUnits to be ProducedTotal Materials RequiredTotal Cost of Direct Materials PurchasesDirect Materials PurchasesDirect Labor Time Per UnitTotal Required Direct Labor Hours | |||||||
Total Direct Labor CostDirect Labor Cost Per HourTotal Required Direct Labor HoursUnits to be ProducedBeginning Direct Materials (Pounds)Total Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionDesired Ending Direct Materials (Pounds)Cost Per PoundDirect Labor Time Per UnitDirect Materials Per UnitDirect Materials Purchases | |||||||
Total Direct Labor CostDirect Labor Time Per UnitTotal Required Direct Labor HoursTotal Pounds Needed for ProductionUnits to be ProducedDirect Materials PurchasesTotal Cost of Direct Materials PurchasesDesired Ending Direct Materials (Pounds)Beginning Direct Materials (Pounds)Direct Labor Cost Per HourDirect Materials Per UnitTotal Materials RequiredCost Per Pound | |||||||
AddLess: Direct Materials Per UnitTotal Direct Labor CostDirect Materials PurchasesCost Per PoundBeginning Direct Materials (Pounds)Desired Ending Direct Materials (Pounds)Total Materials RequiredTotal Required Direct Labor HoursDirect Labor Cost Per HourTotal Cost of Direct Materials PurchasesDirect Labor Time Per UnitUnits to be ProducedTotal Pounds Needed for Production | |||||||
Total Required Direct Labor HoursUnits to be ProducedTotal Materials RequiredDirect Labor Cost Per HourDesired Ending Direct Materials (Pounds)Total Direct Labor CostTotal Cost of Direct Materials PurchasesDirect Materials PurchasesDirect Labor Time Per UnitDirect Materials Per UnitCost Per PoundTotal Pounds Needed for ProductionBeginning Direct Materials (Pounds) | |||||||
AddLess: Units to be ProducedDirect Labor Cost Per HourDesired Ending Direct Materials (Pounds)Total Pounds Needed for ProductionTotal Materials RequiredTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Required Direct Labor HoursBeginning Direct Materials (Pounds)Direct Materials Per UnitCost Per PoundDirect Labor Time Per UnitDirect Materials Purchases | |||||||
Total Cost of Direct Materials PurchasesUnits to be ProducedTotal Direct Labor CostDesired Ending Direct Materials (Pounds)Direct Labor Cost Per HourDirect Labor Time Per UnitTotal Pounds Needed for ProductionCost Per PoundBeginning Direct Materials (Pounds)Total Materials RequiredDirect Materials Per UnitTotal Required Direct Labor HoursDirect Materials Purchases | |||||||
Direct Labor Cost Per HourTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Pounds Needed for ProductionCost Per PoundUnits to be ProducedDirect Materials PurchasesDesired Ending Direct Materials (Pounds)Direct Materials Per UnitTotal Required Direct Labor HoursBeginning Direct Materials (Pounds)Direct Labor Time Per UnitTotal Materials Required | $ | $ | |||||
Desired Ending Direct Materials (Pounds)Total Required Direct Labor HoursTotal Direct Labor CostDirect Labor Time Per UnitBeginning Direct Materials (Pounds)Direct Labor Cost Per HourDirect Materials PurchasesTotal Materials RequiredTotal Cost of Direct Materials PurchasesTotal Pounds Needed for ProductionUnits to be ProducedCost Per PoundDirect Materials Per Unit | $ | $ | $ |
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