Question
urple Co.'s production budget for Product X for the year ending December 31 is as follows: Product X Expected units to be sold 640,000 Desired
urple Co.'s production budget for Product X for the year ending December 31 is as follows:
Product X Expected units to be sold 640,000 Desired ending inventory, December 31 85,000 Total units available 725,000 Estimated beginning inventory, January 1 (90,000) Total units to be produced 635,000
In Purple's production operations, Materials A, B, and C are required to make Product X. The quantities of direct materials expected to be used for each unit of product are as follows:
Product X Material A 0.50 lb. per unit Material B 1.00 lb. per unit Material C 1.20 lbs. per unit
The prices of direct materials are as follows:
Material A $0.60 per pound Material B $1.70 per pound Material C $1.00 per pound
Prepare a direct materials purchases budget for Product X, assuming that there are no beginning or ending inventories for direct materials (all units purchased are used in production). Round unit price to two decimal places and the remaining answers to the nearest whole dollar.
Purple Co. Direct Materials Purchases Budget For the Year Ending December 31 Direct Materials A B C Total Units required for production of Product X fill in the blank 1lbs. fill in the blank 2lbs. fill in the blank 3lbs. Unit price $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Total direct materials purchases $fill in the blank 7 $fill in the blank 8 $fill in the blank 9 $
urple Co.'s production budget for Product X for the year ending December 31 is as follows:
| Product X | ||
| Expected units to be sold | 640,000 | |
| Desired ending inventory, December 31 | 85,000 | |
| Total units available | 725,000 | |
| Estimated beginning inventory, January 1 | (90,000) | |
| Total units to be produced | 635,000 |
In Purple's production operations, Materials A, B, and C are required to make Product X. The quantities of direct materials expected to be used for each unit of product are as follows:
| Product X |
| Material A 0.50 lb. per unit |
| Material B 1.00 lb. per unit |
| Material C 1.20 lbs. per unit |
The prices of direct materials are as follows:
| Material A $0.60 per pound |
| Material B $1.70 per pound |
| Material C $1.00 per pound |
Prepare a direct materials purchases budget for Product X, assuming that there are no beginning or ending inventories for direct materials (all units purchased are used in production). Round unit price to two decimal places and the remaining answers to the nearest whole dollar.
| Purple Co. Direct Materials Purchases Budget For the Year Ending December 31 | ||||
| Direct Materials | ||||
| A | B | C | Total | |
| Units required for production of Product X | fill in the blank 1lbs. | fill in the blank 2lbs. | fill in the blank 3lbs. | |
| Unit price | $fill in the blank 4 | $fill in the blank 5 | $fill in the blank 6 | |
| Total direct materials purchases | $fill in the blank 7 | $fill in the blank 8 | $fill in the blank 9 | $ |
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
