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Brief Exercise 177
Springer, Inc. produces rulers from plastic resin. On March 1, there are 5,000 completed rulers and 5,200 pounds of resin on hand. Flyer has estimated production and sales ofrulers in units for the next 4 months as:
Each ruler requires 0.25 pounds of resin. The cost of resin is $4.40 per pound. Flyer wants to have 20% of the next month’s material requirements on hand atthe end of each month. Prepare a direct materials purchases budget for the May.
Solution Brief Exercise 177
Exercise 184
Coliseum Company has budgeted the following unit sales:
Thefinished goods inventory on hand on December 31, 2007, was 6,000 units. It is the company's policy to maintain a finished goods inventory at the end of each quarter equal to 10% of the next quarter'santicipated sales.
Prepare a production budget for the second quarter of 2008.
Solution Exercise 184
Coliseum Company
Production Budget
For the Quarter Ended June 30, 2008Exercise 185
The following facts are provided by Breanna Enterprises for March:
The total pounds needed for production are 2.5 times the units to be produced.
The desired endingdirect materials inventory is 10% of the total pounds needed for production.
Cost per pound is $12.
Total units to be produced is 280,000 in February, 325,000 in March and 300,000 inApril.
Determine the direct materials purchases for March.
Solution Exercise 185
Exercise 187
Nolo Enterprises is preparing its master budget for 2007. Relevant datapertaining to its sales budget are as follows:
Sales for the year are expected to total 800,000 units.
Quarterly sales are 20%, 28%, 31%, and 21%, respectively per quarter.
Thesales price is expected to be $2.00 per unit for the first quarter and then be increased by 10% each subsequent quarter.
Prepare a sales budget for the third quarter of 2007 for...
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