Question
Toy Co Industrial has estimated that production for the next five quarters will be: Production Information 1st quarter, 2017 45,000 units 2nd quarter, 2017 40,000
Toy Co Industrial has estimated that production for the next five quarters will be:
Production Information
1st quarter, 2017 45,000 units
2nd quarter, 2017 40,000 units
3rd quarter, 2017 48,000 units
4th quarter, 2017 39,000 units
1st quarter, 2018 46,000 units
Finished units of production require 4 pounds of raw material per unit. The raw material cost is $3 per pound. There is $81,000 of raw material on hand at the beginning of the first quarter, 2017. Toy Co desires to have 15 percent of next quarter's material requirements on hand at the end of each quarter.
Prepare quarterly direct materials purchases budgets for Toy Co Industrial for 2017.
Toy CoIndustrial
Direct Materials Purchases Budget
For the Year Ending December 31, 2017
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year
Line 1 choices below
Units to be produced # # # # #
Desired ending inventory of raw material
Cost of raw material needed for production
Beginning inventory of raw material
Total material needed
Required raw material purchases
Cost of raw material per unit
Line 2 choices below:
Cost of raw material needed for production $ $ $ $ $
Units to be produced
Cost of raw material per unit
Required raw material purchases
Desired ending inventory of raw material
Total material needed
Beginning inventory of raw material
Line 3 choices below: # # # # #
Total material needed
Required raw material purchases
Beginning inventory of raw material
Cost of raw material per unit
Desired ending inventory of raw material
Cost of raw material needed for production
Units to be produced
Line 4 Choices: # # # # #
Add OR Less : Beginning inventory of raw material
Cost of raw material per unit
Total material needed
Required raw material purchases
Cost of raw material needed for production
Units to be produced
Desired ending inventory of raw material
Line 5 Choices below: # # # # #
Required raw material purchases
Beginning inventory of raw material
Desired ending inventory of raw material
Total material needed
Cost of raw material needed for production
Units to be produced
Cost of raw material per unit
Line 6 Choices: # # # # #
Less OR Add: Required raw material purchases
Cost of raw material per unit
Total material needed
Beginning inventory of raw material
Cost of raw material needed for production
Units to be produced
Desired ending inventory of raw material
Line 7 choices below:
Required raw material purchases $ $ $ $ $
Total material needed
Desired ending inventory of raw material
Units to be produced
Cost of raw material needed for production
Beginning inventory of raw material
Cost of raw material per unit
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Cost-Benefit Analysis For Public Sector Decision Makers
Authors: Diana Fuguitt
1st Edition
1567202225, 9781567202229
