Question
Prepare the production cost report of the testing department for the month of July using weighted-average process costing. (Round Cost per EU answers to 2
Prepare the production cost report of the testing department for the month of July using weighted-average process costing. (Round "Cost per EU" answers to 2 decimal places.)
White Corporations budget calls for the following sales for next year:
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Quarter 1 | 80,000 | units | Quarter 3 | 60,000 | units |
Quarter 2 | 70,000 | units | Quarter 4 | 90,000 | units |
Each unit of the product requires 2 pounds of direct materials. The companys policy is to begin each quarter with an inventory of product equal to 5% of that quarters estimated sales requirements and an inventory of direct materials equal to 20% of that quarters estimated direct materials requirements for production.
Required:
1. Determine the production budget for the second quarter.
2. Determine the materials purchases budget for the second quarter.
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