Question
Question 8 Pembina Industrial has estimated that production for the next five quarters will be: Production Information 1st quarter, 2017 39,000 units 2nd quarter, 2017
Question 8
Pembina Industrial has estimated that production for the next five quarters will be:
Production Information | ||
1st quarter, 2017 | 39,000 units | |
2nd quarter, 2017 | 35,000 units | |
3rd quarter, 2017 | 42,000 units | |
4th quarter, 2017 | 34,000 units | |
1st quarter, 2018 | 41,000 units |
Finished units of production require 10 pounds of raw material per unit. The raw material cost is $3 per pound. There is $117,000 of raw material on hand at the beginning of the first quarter, 2017. Pembina desires to have 10 percent of next quarter's material requirements on hand at the end of each quarter. Prepare quarterly direct materials purchases budgets for Pembina Industrial for 2017.
Pembina Industrial Direct Materials Purchases Budget For the Year Ending December 31, 2017 | |||||||||||
Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year | |||||||
Beginning inventory of raw materialUnits to be producedDesired ending inventory of raw materialTotal material neededCost of raw material per unitRequired raw material purchasesCost of raw material needed for production | |||||||||||
Cost of raw material needed for productionRequired raw material purchasesCost of raw material per unitDesired ending inventory of raw materialTotal material neededBeginning inventory of raw materialUnits to be produced | $ | $ | $ | $ | $ | ||||||
Cost of raw material needed for productionTotal material neededDesired ending inventory of raw materialBeginning inventory of raw materialRequired raw material purchasesUnits to be producedCost of raw material per unit | |||||||||||
AddLess :Total material neededCost of raw material needed for productionUnits to be producedCost of raw material per unitBeginning inventory of raw materialRequired raw material purchasesDesired ending inventory of raw material | |||||||||||
Units to be producedTotal material neededBeginning inventory of raw materialRequired raw material purchasesCost of raw material needed for productionCost of raw material per unitDesired ending inventory of raw material | |||||||||||
LessAdd :Units to be producedCost of raw material needed for productionBeginning inventory of raw materialRequired raw material purchasesCost of raw material per unitDesired ending inventory of raw materialTotal material needed | |||||||||||
Cost of raw material per unitBeginning inventory of raw materialDesired ending inventory of raw materialRequired raw material purchasesTotal material neededCost of raw material needed for productionUnits to be produced | $ | $ | $ | $ | $ |
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