Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Topic: Production and DM Budgets please help me solve this problem Problem # 4 Samano Industries has decided to produce the following number of units

Topic: Production and DM Budgets please help me solve this problem

image text in transcribed
Problem # 4 Samano Industries has decided to produce the following number of units for each of the four upcoming quarters of 2022 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Units to produce 6,000 8,000 9,000 10,000 Each unit requires 4 kg of raw materials costing $6 per kilogram. On December 31, 2021, the ending raw materials inventory was 1,800 kg. Management wants to have raw materials inventory at the beginning of each quarter equal to 30% of the current quarter's production requirements. The production budget for the first quarter of 2023 will be 12,000 units. Required: a. Prepare a direct materials purchases budget for each of the four quarters. Use the following template to enter your answers. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Units to produce 6,000 8,000 9,000 10,000 Total DM purchases b. All purchases are made on account. 80% of DM purchases are paid for in the quarter and 20% are paid the following quarter. On December 31, 2021 Samano had an accounts payable balance for DM purchases of $30,000. Prepare a schedule of cash disbursements for DM purchases for Q1, Q2 and Q3. Use the following template to enter your answers. Quarter 1 Quarter 2 Quarter 3 Total cash disbursements for DM purchases

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Cost Accounting A Managerial Emphasis

Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ

6th Canadian edition

978-0133392883

Students also viewed these Accounting questions

Question

What has been your desire for leadership in CVS Health?

Answered: 1 week ago

Question

Question 5) Let n = N and Y Answered: 1 week ago

Answered: 1 week ago