Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please fill in chart with step-by-step shown work. I added a few information in data given to help. thank you in advance 27. Qwerty Corp.
Please fill in chart with step-by-step shown work.
I added a few information in data given to help.
thank you in advance
27. Qwerty Corp. has the following standard cost sheet: Direct Materials & gallons Direct Labor 4 DLH Variable MOH 5 MHR Fixed MOH 5 MHR $ 5.00 per gallon @ $18.00 per DLH a $50.00 per MHR @ $80.00 per MHR As of January 1st, projected sales volume is 30,000 units for January, 50,000 units for February, 40,000 units for March, 30,000 units for April, and 40,000 units for May. Qwerty has 5,000 units of finished goods and 40,000 gallons of direct materials in beginning inventory. Each month, Qwerty wants to have finished goods inventory of 20% of the following month's expected sales, and direct materials inventory of 30% of the following month's direct materials production needs. Calculate Qwerty's forecast direct materials purchases in dollars for March. From the data given, the closing stock of Finished Goods (FG) is 20% of expected sale of following month and the Direct Material (DM) in each month is 30% of Material required for estimated production of next month. The closing stock of each month is the opening stock of succeeding month. Material required for estimated production = Estimated production * 8 gallons (One finished goods need 8 gallons) Estimated purchase of Direct material = Material required for estimated production + Estimated Closing stock of material - Estimated Opening stock. ANSWER (10pts): JAN FEB MAR APR MAY Estimated opening FG Estimated opening DM Estimated production Material required for estimated production Estimated closing Fg Estimated closing DM Estimated purchase of DM Computation of estimated purchases: Estimated purchase of DM Rate per gallons($) Estimated purchases JAN FEB MAR APR MAYStep 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