Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show how you are getting the numbers Prepare the company's budgeted balance sheet. EXERCISE 8-10 Production and Direct Materials Budgets LO8-3, LO8-4 Pearl Products

please show how you are getting the numbers
image text in transcribed
image text in transcribed
Prepare the company's budgeted balance sheet. EXERCISE 8-10 Production and Direct Materials Budgets LO8-3, LO8-4 Pearl Products Limited of Shenzhen. China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture cach unit of Supermix, one of the company's products. The company is planning its raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must equal 3,000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 10,000 units. b. The raw materials inventory on hand at the end of each month must equal one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 54,000ce of solvent H300. c. The company maintains no work in process inventories, A monthly sales budget for Supermix for the third and fourth quarters of the year follows. Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October. 2. Examine the production budget that you prepared in (1) above. Why will the company produce more units than it sells in July and August, and fewer units than it sells in September and October? 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Technology Control And Audit

Authors: Sandra Senft, Frederick Gallegos, Aleksandra Davis

4th Edition

1439893209, 978-1439893203

More Books

Students also viewed these Accounting questions