Walman Company has budgeted to produce 44,000 units of Product Y for March 20Y9. To make one unit of finished product Y, three pounds of raw material are required. Actual beginning and desired ending inventories of raw material are as follows: 3/1/20Y9 – 100,000 pounds (Beginning) 3/31/20Y9 – 110,000 pounds (Desired Ending) How many pounds of raw material is Walman planning to purchase? Please prepare a purchases budget for the raw material.

Walman Company has budgeted to produce 44,000 units of Product Y for March 20Y9. To make one unit of finished product Y, three pounds of raw material are required. Actual beginning and desired ending inventories of raw material are as follows: 3/1/20Y9 – 100,000 pounds (Beginning) 3/31/20Y9 – 110,000 pounds (Desired Ending) How many pounds of raw material is Walman planning to purchase? Please prepare a purchases budget for the raw material.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3E: Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost...

See similar textbooks

Similar questions

Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The companys policy is to have enough material on hand to equal 10% of the next months production needs and to maintain a finished goods inventory equal to 25% of the next months production needs. What is the budgeted cost of purchases for March?
Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs $3.00 per yard. The companys policy is to have enough material on hand to equal 15% of next months production needs and to maintain a finished goods inventory equal to 20% of the next months production needs. What is the budgeted cost of purchases for March?
Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.
1. Ashton Company produces Product A. Among the materials used are aluminum strips. According to the standards established based on the normal capacity level, three pieces of aluminum strips should be used for each product at a standard price of P0.60 per piece. For the month of November 2023, budgeted production was 5,100 units of Product A. During the month, however, records showed the following: Actual production: 4,000 units Aluminum strips purchased in November: 11,800 pieces at P0.62 Increase in inventory during November: 3,700 pieces For the aluminum strips, compute the following (show your solution): a. Budgeted quantity b. Budgeted cost c. Actual cost d. Standard quantity e. Standard cost f. Standard cost variance g. Price variance h. Quantity variance 2. During the month, 1,200 units of Product LTK were produced. Actual direct labor hour required was 600 direct labor hours at an actual cost of $6,060. According to the standard cost card for the product, 0.6 of labor hour…
Use the information below for Mandy Corporation to answer the question that follow.Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 640,000 units, estimated beginning inventory is 98,000 units, and desired ending inventory is 80,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.Material A: 0.50 lb. per unit @ $0.60 per poundMaterial B: 1.00 lb. per unit @ $1.70 per poundMaterial C: 1.20 lb. per unit @ $1.00 per poundThe dollar amount of Material C used in production during the year is
The production department of Headstrong Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 8,100 9,100 7,100 6,100 In addition, the beginning raw materials inventory for the first quarter is budgeted to be 1,950 kilograms and the beginning accounts payable for the first quarter are budgeted to be $3,490. Each unit requires 3.1 kg of raw material that costs $2.50 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 2,325 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 $19.5 per hour. Required: 1-a. Prepare the company's direct…
Use the information below for Mandy Corporation to answer the question that follow. Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 696,000 units, estimated beginning inventory is 106,000 units, and desired ending inventory is 89,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.Material A: 0.50 lb. per unit @ $0.71 per poundMaterial B: 1.00 lb. per unit @ $1.89 per poundMaterial C: 1.20 lb. per unit @ $0.84 per poundThe dollar amount of Material B used in production during the year is
Scotch Brand Products produces packaging tape and has determined the following to be its standard cost of producing one case of budget packaging tape: Material (3.50 ounces at $1.30 per ounce) $4.55 Labor (0.30 hour at $12.00 per hour) 3.60 Overhead 2.70 Total $10.85 At the start of 2021, Scotch Brand planned to produce 20,000 cases of tape during the year. Overhead is allocated based on the number of cases of tape produced. Annual fixed overhead is budgeted at $18,000 and the variable overhead costs are budgeted at $1.80 per case. The following information summarizes the results for 2021: Actual production, 21,000 cases Purchased 275,000 ounces of material at a total cost of $343,750 Used 266,250 ounces of material in production Employees worked 22,000 hours, total labor cost $275,000 Actual overhead incurred,…
Scotch Brand Products produces packaging tape and has determined the following to be its standard cost of producing one case of budget packaging tape: Material (3.50 ounces at $1.30 per ounce) $4.55 Labor (0.30 hour at $12.00 per hour) 3.60 Overhead 2.40 Total $10.55 At the start of 2021, Scotch Brand planned to produce 80,000 cases of tape during the year. Overhead is allocated based on the number of cases of tape produced. Annual fixed overhead is budgeted at $64,000 and the variable overhead costs are budgeted at $1.60 per case. The following information summarizes the results for 2021: Actual production, 81,000 cases Purchased 275,000 ounces of material at a total cost of $343,750 Used 266,250 ounces of material in production Employees worked 22,000 hours, total labor cost $275,000 Actual overhead incurred,…
Parsons Company is planning to produce 1,900 units of product in 2020. Each unit requires 2.20 pounds of materials at $6.80 per pound and a half-hour of labor at $14.00 per hour. The overhead rate is 40% of direct labor. (a) Compute the budgeted amounts for 2020 for direct materials to be used, direct labor, and applied overhead. Direct materials $ Direct labor Overhead (b) Standard cost $ Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e.g. 2.75.) $ $
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced 1st Quarter 5,600 2nd 3rd 4th Quarter Quarter Quarter 8,600 7,600 6,600 In addition, 6,600 grams of raw materials Inventory is on hand at the start of the 1st quarter and the beginning accounts payable for the 1st quarter is $3,480. Each unit requires 8.60 grams of raw material that costs $1.20 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter's production needs. The desired ending Inventory for the 4th quarter is 8,600 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labour-hours and direct labourers are paid $10.30 per hour. Required: 1. Prepare the company's direct materials purchases budget and schedule of expected cash disbursements for…
Uli Industrial has estimated that production for the next five quarters will be: Production Information 1st quarter, 2020 47,700 units 2nd quarter, 2020 43,200 units 3rd quarter, 2020 52,200 units 4th quarter, 2020 40,800 units 1st quarter, 2021 49,300 units Finished units of production require 6 pounds of raw material per unit. The raw material cost is $7 per pound. There is $300,510 of raw material on hand at the beginning of the first quarter, 2020. Uli 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 Uli Industrial for 2020. Uli Industrial Direct Materials Purchases Budget For the Year Ending December 31, 2020 Quarter 1 Quarter 2 Quarter 3 Quarter 4 $ $ $ $ $ $ $ %24 %24 %24 %24 %24