The budget components for Abu Dhabi Company for the quarter ended June 30 appear below. Abu...
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The budget components for Abu Dhabi Company for the quarter ended June 30 appear below. Abu Dhabi sells Plastic Bottle for $12 each. Budgeted sales and production for the next three months are: April May June Sales 20,000 units 50,000 units 30,000 units Instructions Production 26,000 units 46,000 units 29,000 units Spounds plastic bottle Abu Dhabi desires to have Plastic Bottles on hand at the end of each month equal to 20 percent of the following month's budgeted sales in units. On March 31, Abu Dhabi had 4.000 completed units on hand. Five pounds of plastic are required for each Plastic Bottle. At the end of each month, Abu Dhabi desires to have 10 percent of the following month's production material needs on hand. On March 31, Abu Dhabi had 13.000 pounds of plastic on hand. The materials used in production cost $0.60 per pound. Each Plastic container produced requires 0.10 hours of direct labor. 1. Determine how much the materials purchases budget will be for the month ending April 30. 2. Comments on the results from a managerial point of view. The budget components for Abu Dhabi Company for the quarter ended June 30 appear below. Abu Dhabi sells Plastic Bottle for $12 each. Budgeted sales and production for the next three months are: April May June Sales 20,000 units 50,000 units 30,000 units Instructions Production 26,000 units 46,000 units 29,000 units Spounds plastic bottle Abu Dhabi desires to have Plastic Bottles on hand at the end of each month equal to 20 percent of the following month's budgeted sales in units. On March 31, Abu Dhabi had 4.000 completed units on hand. Five pounds of plastic are required for each Plastic Bottle. At the end of each month, Abu Dhabi desires to have 10 percent of the following month's production material needs on hand. On March 31, Abu Dhabi had 13.000 pounds of plastic on hand. The materials used in production cost $0.60 per pound. Each Plastic container produced requires 0.10 hours of direct labor. 1. Determine how much the materials purchases budget will be for the month ending April 30. 2. Comments on the results from a managerial point of view.
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1 Materials Purchases Budget April Budgeted Production 26000 units Required ... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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