Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The production department of Hareston Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter

image text in transcribed
image text in transcribed
The production department of Hareston Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 7,600 2nd Quarter 8,600 3rd Quarter 6,600 Units to be produced Quarter 5,600 In addition, the beginning raw materials inventory for the first quarter is budgeted to be 1,700 kilograms and the beginning accounts payable for the first quarter are budgeted to be $3,240. Each unit requires 2.6 kilograms of raw material that costs $2.00 per kilogram. Management desires to end each quarter with an Inventory of raw materials equal to 10% of the following quarter's production needs. The desired ending inventory for the fourth quarter is 1,950 kilograms. Management plans to pay for 80% of raw material purchases in the quarter acquired and 20% in the following quarter. Each unit requires 0.6 direct labour-hours, and direct labour-hour workers are paid $17.0 per hour. Required: 1-a. Prepare the company's direct materials budget. (Round your answer to the nearest whole dollar amount.) HARESTON COMPANY Direct Materials Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total needs Golograms) 1-b. Prepare the schedule of expected cash disbursements for materials for the upcoming fiscal year. (Round your answer to the nearest whole dollar amount.) Year HARESTON COMPANY Schedule of Expected Canh Disbursements for Materials 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Accounts payable, beginning balance 1st Quarter purchase 2nd Quarter purchase 3rd Quarter purchase 4th Quarter purchase Total cash disbursements for materiale $ 0 $ O $ OS 0 S 0 2. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Do not round intermediate calculations.) HARESTON COMPANY Direct Labour Budget Tot Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total direct labour hours needed Total direct labour cost

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

Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

5th edition

9780470418239, 470239808, 9780470239803, 470418230, 978-1118128169

More Books

Students also viewed these Accounting questions