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PLEASE HELP ME !!! NEED ANSWERS FOR ALL THE PARTS OF THE QUESTION !!! - ACCOUNTS 10-8. Combined Production and Purchases Budgets Super Clean, Inc.
PLEASE HELP ME !!! NEED ANSWERS FOR ALL THE PARTS OF THE QUESTION !!! - ACCOUNTS
10-8. Combined Production and Purchases Budgets Super Clean, Inc. produces and sells stain remover. Information about the budget for the year 2009 is as follows: 1. The company expects to sell 40,000 bottles of stain remover in the first quarter, 50,000 in the second quarter, 93,000 in the third quarter, and 36,000 in the fourth quarter 2. A bottle of stain remover requires 6 ounces of Chemical A and 10 ounces of Chemi- cal B. 3. The desired ending inventory of finished goods is equal to 20 percent of next quar- ter's salest whereas the desired ending inventory for material is 15 percent of next quarter's 4. There are 11,000 bottles of stain remover, 57.000 ounces of Chemical A, and 97,000 s production requirements ounces of Chemical B on hand at the beginning of the first quarter. 5. At the end of the fourth quarter, the company must have 12,000 botties of stain re- mover, 60,000 ounces of Chemical A, and 102,000 ounces of Chemical B to meet its needs in the first quarter of 2008. 6. The cost of Chemical A is $0.12 per ounce, the cost of Chemical B is s0.09 per ounce, and the selling price of the stain remover is $9.95 per bottle. 7. The cost of direct labor is 50.60 per bottle, and the cost of variable overhead is 50.90 per bottie. Fixed manufacturing overhead is $40.000 per quarter 8. Variabie seling and administrative expense is 4 percent of sales, and fixed selling and administrative expenses is $50,000 per quarter Required a. Prepare a production budget for each quarter of 2009. b. Prepare a material purchases budget for each quarter of 2009. c. Prepare a budgeted income statement for each quarter of 2009 (ignore taxes). x print nerd copStep by Step Solution
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