Crest Products expects the following sales of its single product: Units 20,400 16,700 September October November...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Crest Products expects the following sales of its single product: Units 20,400 16,700 September October November December January 17,100 23,200 19,400 Required: Crest has an ending finished goods inventory policy of 30% of the next month's sales needs. September 1 inventory is projected to be 7.400 units. Each finished unit requires 2 units of Component X and 3 units of Component Z. August 1 materials inventory includes 3,000 units of Component X and 173,000 units of Component Z. Crest desires to maintain a Component X inventory equal to 10% of next month's production needs and a Component z inventory equal to 20% of next month's production needs. a. Prepare a production budget for Crest for the quarter ending December 31. Crest Products Production Budget For the Quarter Ending December 31 October November Budgeted unit sales Plus: Ending finished goods inventory Less: Beginning finished goods inventory December Total b. Prepare a direct materials purchases budget for Component Z for quarter ending December 31. Assume a desired ending inventory for Component Z of 16,000 units at December 31, and a constant unit cost of $4 per lb. Crest Products Direct Materials Purchases Budget (Component Z) For the Quarter Ending December 31 October November Budgeted production (units) Direct materials requirements per unit Total direct material needed Plus: Ending inventory Less: Beginning inventory Total purchases of Component Z Cost of Component Z Budgeted cost of Component Z purchases (10,092) (11,358) December (13,236) $ Total 16,000 10,092 717,352 Crest Products expects the following sales of its single product: Units 20,400 16,700 September October November December January 17,100 23,200 19,400 Required: Crest has an ending finished goods inventory policy of 30% of the next month's sales needs. September 1 inventory is projected to be 7.400 units. Each finished unit requires 2 units of Component X and 3 units of Component Z. August 1 materials inventory includes 3,000 units of Component X and 173,000 units of Component Z. Crest desires to maintain a Component X inventory equal to 10% of next month's production needs and a Component z inventory equal to 20% of next month's production needs. a. Prepare a production budget for Crest for the quarter ending December 31. Crest Products Production Budget For the Quarter Ending December 31 October November Budgeted unit sales Plus: Ending finished goods inventory Less: Beginning finished goods inventory December Total b. Prepare a direct materials purchases budget for Component Z for quarter ending December 31. Assume a desired ending inventory for Component Z of 16,000 units at December 31, and a constant unit cost of $4 per lb. Crest Products Direct Materials Purchases Budget (Component Z) For the Quarter Ending December 31 October November Budgeted production (units) Direct materials requirements per unit Total direct material needed Plus: Ending inventory Less: Beginning inventory Total purchases of Component Z Cost of Component Z Budgeted cost of Component Z purchases (10,092) (11,358) December (13,236) $ Total 16,000 10,092 717,352
Expert Answer:
Answer rating: 100% (QA)
SOLUTION a Production Budget for Crest Products for the Quarter Ending December 31 October Budgeted ... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
Posted Date:
Students also viewed these human resource management questions
-
master budget case camdrone as part of the continued advancement of technology, a drone camera market has emerged in recent years the drone camera market has been growing as more photography...
-
Gertrude Products expects the following sales of its single product: Units July 6,300 August 6,900 September 7,400 October 8,200 November 9,500 Gertrude desires an ending finished goods inventory to...
-
D Hawk entered the market in early 2018. D Hawk manufactures camera drones, selling primarily to retailers. D Hawk is pleased with its financial performance over its first few years of operations,...
-
Briefly explain your answers Fig.1 1. Assuming the monopoly pictured above is a profit maximizing monopoly, what price will the monopoly charge for its output? 2. The profit maximizing monopoly will...
-
Suppose f(x) = 1.5x2 for -1 < x < 1. Determine the mean and variance of X.
-
(S)-2-Butanol slowly racemizes on standing in dilute sulfuric acid.Explain. CH3CH2CHCH3 2-Butanol
-
Using information from the preceding question, suppose Copies R Us sold the machine for $5,000. What is the result of this disposal transaction? a. Gain of $2,000 b. Loss of $2,000 C. Gain of $3,000...
-
Salamone Heaters selected data for October 2013 are presented here (in millions): Direct materials inventory, 10/ 1/ 2013 $ 75 Direct materials purchased 335 Direct materials used 380 Total...
-
- Job 652 was recently completed. Manufacturing overhead is allocated based on direct labor hours (DLH). The following data have been recorded on its job cost sheet: Direct materials Actual $59,400...
-
The following table contains data for a hypothetical economy: Consumer Expenditures $500 million Wages $650 million Investment Expenditures $200 million Interest Payments $100 million Government...
-
The following molecule allows three rotation angles per bond (two bonds). Each bond rotation angle is independent and can exist in 3 states; high energy (2 kl/mol), middle energy (1 kJ/mol), and low...
-
Explain how investment may result in economic growth.
-
Explain three factors that might lead to an increase in the supply of a currency.
-
Explain how increased foreign direct investment might promote economic growth.
-
"A moral obligation bond is a form of a limited general obligation bond." Explain why you agree or disagree with this statement.
-
Explain the difference between import substitution and export promotion.
-
Calculate the payback period for a project that costs $65,000 and returns $21,000 at the end of each year. Express your answer in years rounded to 2 decimal places. 2. Andy's Fishing Charters is...
-
Solve each problem. Find the coordinates of the points of intersection of the line y = 2 and the circle with center at (4, 5) and radius 4.
-
What indicators provide persuasive evidence of control by governments?
-
On January 4, 20X7, Pradeesh Corp. acquired 100% of the outstanding common shares of Serena Inc. by a share- for- share exchange of its own shares valued at $ 1,000,000. The statements of financial...
-
On January 1, 20X6, Woods Ltd. formed a foreign subsidiary that issued all of its currently outstanding common shares on that date. Selected captions from the SFPs, all of which are shown in local...
-
Prove that van der Waals constants \((a, b)\) can be expressed in terms of critical temperature and pressure as follows: a = 27 R 2 T 2 c 64 P c b = R T c 8 P c a = 27 R 2 T c 2 64 P c b = R T c 8 P c
-
Justify the following statement with illustration: 'Violation of Kelvin-Planck statement leads to the violation of Clausius statement'.
-
Show that where \[ \left(\frac{\partial U}{\partial V} ight)_{T}=\frac{T \beta}{\kappa}-P \] \(\beta=\) Coefficient of volume expansion \(\kappa=\) Isothermal compressibility.
Study smarter with the SolutionInn App