Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 3 Shine Company produces hair care products. The company estimated sales of hair care products in units for the months of June to December

image text in transcribedimage text in transcribed
QUESTION 3 Shine Company produces hair care products. The company estimated sales of hair care products in units for the months of June to December in 2020 are as follow: Months Sales in Unit June 500 July 600 August 700 September 800 October 900 November 1.100 December 1,200 The finished goods units on hand on May 30, was 125 units. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 25% of next month's anticipated sales. The hair care products are made from specialised oil which costs RM35 per liter. In order to produce each unit, the company needs 0.2 liter of specialised oil. The direct material at beginning of June 2020 is 25.8 liters. The management of Shine Company desires to have 20% of the next month's materials requirements on hand at the end of each month. Required: 1) Prepare production budget for the third quarter of 2020. (9 marks) 2) Prepare direct materials purchases budget for its third quarter of 2020. (11 marks)Hamer Industries Production Budget QUESTION 2 For the first quarter of 2018 Hamer Industries has budgeted the following unit sales: January February March April First Quarter 2018 Units Expected unit sales 20,000 18000 19000 21,000 57000 January 20,000 Add: Desired ending finished goodd units 4500 4750 5250 6250 5250 February 18,000 Total required units 24500 22750 24250 27250 62250 March 19,000 Less: Beginning finished good units 500 4500 4750 5250 5000 April 21,000 Required production in units 19500 18250 19500 22000 57250 May 25,000 The finished goods units on hand on December 31, 2017, was 5,000 un Hammer Industries kilograms of raw materials that are estimated to cost an average of R company's policy to maintain a finished goods inventory at the end of ea Direct material Budget of next month's anticipated sales. They also have a policy of maint For the quarter ended march 31,2017 inventory at the end of each month equal to 35% of the pounds needed f Units to be produced 19500 18250 19500 22000 production. There were 27,300 kilograms of raw materials on hand at Dec Direct materials per unit Instructions Total kilongrams needed for production 78000 73000 78000 88000 For the first quarter of 2018, prepare (1) a production budget and (2) a dir ADD:Desired ending direct materials 25550 27300 30800 Total Materials required 103550 100300 108800 Less:Beginning direct materials (KG) 27300 25550 27300 Direct Materials purchases 76250 74250 81500 Cost per kilogram 5 5 5 Total cost of direct materials purchases 381250 373750 407500 1162500

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

Textbook Of Financial Accounting And Analysis

Authors: Gaurav Agrawal

1st Edition

9350840901, 9789350840900

More Books

Students also viewed these Accounting questions

Question

How does teacher immediacy affect learning?

Answered: 1 week ago