Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show me how to get itthanks Question 5: Spruce Grove Co. manufactures furniture. To produce each unit of finished goods, the firm uses 9

Please show me how to get itthanks image text in transcribed
Question 5: Spruce Grove Co. manufactures furniture. To produce each unit of finished goods, the firm uses 9 kilograms of direct materials. The firm does not utilize its direct materials for any other purpose. The cost for direct materials is $12.50 per kilogram. 80% of the firm's direct materials purchases are paid for in the quarter of purchase, and the other 20% in the following quarter. All direct materials ordered during a quarter are delivered during that quarter. At the end of each quarter, it is company policy to have on hand the following inventory quantities: 20% of the finished goods forecast to be sold during the next quarter 30% of the direct materials (kilograms) projected to be 'used during the next quarter The firm's quarterly sales forecast (in # of units) is provided below: Quarter Units Sold 800 200 900 500 Required: Determine the following budget elements: Part a. The volume of finished units to be produced for the first & second quarters respectively. 2 3 4 680 Units 340 Units Second Quarter Final Answer: First Quarter /2 Part b. The amount of direct materials (in kg) to be purchased for the first & second quarters respectively. 5,202 kg 4,356 kg Final Answer: First Quarter Second Quarter 12 Part c. Cash disbursements for direct materials purchases to be paid out in the second quarter

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

Deadly Audit A Buckeye Barrister Mystery

Authors: David M Selcer

1st Edition

0988194368, 978-0988194366

More Books

Students also viewed these Accounting questions

Question

What are the determinants of cash cycle ? Explain

Answered: 1 week ago

Question

Describe a persuasive message.

Answered: 1 week ago

Question

Identify and use the five steps for conducting research.

Answered: 1 week ago

Question

List the goals of a persuasive message.

Answered: 1 week ago