Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer its urgent. The production department of Hareston Company has submitted the following forecast of units to be produced by quarter for the upcoming
please answer its urgent.
The production department of Hareston Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 7,400 Units to be produced 2nd Quarter 8,400 3rd Quarter 6,400 4th Quarter 5,400 In addition, the beginning raw materials inventory for the first quarter is budgeted to be 1,600 kilograms and the beginning accounts payable for the first quarter are budgeted to be $3,140. Each unit requires 2.4 kilograms of raw material that costs $1.80 per kilogram. Management desires to end each quarter with an inventory of raw materials equal to 10% of the following quarter's production needs. The desired ending inventory for the fourth quarter is 1.800 kilograms. Management plans to pay for 80% of raw material purchases in the quarter acquired and 20% in the following quarter. Each unit requires 0.6 direct labour-hours, and direct labour-hour workers are paid $16.0 per hour. Required: 1-8. Prepare the company's direct materials budget. (Round your answer to the nearest whole dollar amount.) HARESTON COMPANY Direct Materials Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Production needs (kilograms) Add: Desired ending inventory Total needs (kilograms) Deduct. Beginning inventory Raw materials to be purchased (kilograms) Cost of raw materials to be purchasedStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started