Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Howell Company has prepared a sales budget of 47.000 finished units for a 3-month period. The company has an inventory of 10,000 units of

image text in transcribed
image text in transcribed
image text in transcribed
The Howell Company has prepared a sales budget of 47.000 finished units for a 3-month period. The company has an inventory of 10,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 18,000 units at the end of the succeeding quarter It takes 3 gallons of direct materials to make one unit of finished product. The company has inventory of 69.000 gallons of direct materials at December 31 and has a larger ending inventory of 53,000 gallons at the end of the succeeding quarter. How many galions of direct materials should Howell Company purchase during the 3 months ending March 317 Select the labels and enter the amounts to calculate the direct materials (galions) to be purchased Direct Material Purchases Budget For the 3 Months Ending March 31 Purchases to be made in gallons) Prime, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon Prime markets two products: 12-ounce disposable plastic bottles and 1-gallon reusable plastic containers Read the requirements Requirement 1. For 2018. Prime marketing managers projed monthly sales of 420,000 12-ounce bottles and 160.000 1-galon containers. Average seling prices are estimated at $0.50 per 12 ounce bottle and $1.75 per 1-gallon container. Prepare a rhvenues budget for Prime, Inc., for the year ending December 31, 2018 Total Revenues Budget For Year Ending December 31,2018 Units Price 12-oz bottles 1-gallon containers Budgeted revenues 1. For 2018, Prime marketing managers project monthly sales of 420,000 12-ounce bottles and 160,000 1-gallon containers. Average selling prices are estimated at $0.50 per 12-ounce bottle and $1.75 per 1-gallon container. Prepare a revenues budget for Prime, Inc., for the year ending December 31, 2018. 2. Prime begins 2018 with 920,000 12-ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2018, be no less than 700,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Prime must produce during 2018? 3. The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2018, be 230,000 units. If the production budget calls for Prime to produce 2,000,000 1-gallon containers during 2018, what is the beginning inventory of 1-gallon containers on January 1, 2018? Print Done

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_2

Step: 3

blur-text-image_3

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

Risk Management In Organizations An Integrated Case Study Approach

Authors: Margaret Woods

1st Edition

0415591732, 9780415591737

More Books

Students also viewed these Accounting questions