A company is preparing production and purchasing budgets. One of the company's products (Product Z) has...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A company is preparing production and purchasing budgets. One of the company's products (Product Z) has the following budgeted sales units: Month 1 Month 2 Month 3 Month 4 8, 000 8, 500 9, 000 8, 000 6, 000 6, 500 Month 5 Month 6 Two raw materials (Materials X and Y) are used in the manufacture of Product Z. Each finished unit of the product requires 0.5 kg (at RM8.00 per kg) and 0.8 kg (at RM4.50 per kg) of Materials X and Y respectively. Production is planned at a level to meet the sales expectations of the following month. Purchases of raw materials are planned so that the materials required for production in a certain month are purchased during the preceding month. Further planned adjustments are made to stock levels to reflect seasonal uncertainties in the market place. These further adjustments to stock levels, beyond those that would result from the above production and purchasing policies are Raw Materials Finished Goods Material X Material Y Product Z +300 kg 300 kg + 500 kg 500 kg + 400 units - 400 units Month 2 Month 3 Required: (a) Prepare the Production Budget (units of Product Z) for each of Months 3, 4 and 5. (b) Prepare the Materials Purchases Budget (kg of each of Materials X and Y) for each of Months 2, 3 and 4. (c) Calculate the total value (RM) of the Budgeted Materials Purchases in (b) above. A company is preparing production and purchasing budgets. One of the company's products (Product Z) has the following budgeted sales units: Month 1 Month 2 Month 3 Month 4 8, 000 8, 500 9, 000 8, 000 6, 000 6, 500 Month 5 Month 6 Two raw materials (Materials X and Y) are used in the manufacture of Product Z. Each finished unit of the product requires 0.5 kg (at RM8.00 per kg) and 0.8 kg (at RM4.50 per kg) of Materials X and Y respectively. Production is planned at a level to meet the sales expectations of the following month. Purchases of raw materials are planned so that the materials required for production in a certain month are purchased during the preceding month. Further planned adjustments are made to stock levels to reflect seasonal uncertainties in the market place. These further adjustments to stock levels, beyond those that would result from the above production and purchasing policies are Raw Materials Finished Goods Material X Material Y Product Z +300 kg 300 kg + 500 kg 500 kg + 400 units - 400 units Month 2 Month 3 Required: (a) Prepare the Production Budget (units of Product Z) for each of Months 3, 4 and 5. (b) Prepare the Materials Purchases Budget (kg of each of Materials X and Y) for each of Months 2, 3 and 4. (c) Calculate the total value (RM) of the Budgeted Materials Purchases in (b) above.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
M Company prepared a static budget of 50,000 direct labor hours, with estimated overhead costs of $250,000 for variable overhead and $60,000 for fixed overhead. Trepid then prepared a flexible budget...
-
A company is preparing a production plan for an item to minimize total cost for the next three months. The holding cost applied to the inventory at the end of each month is $3/item. The demand for...
-
A company is preparing for a cycle count of its inventory. The companys ERP inventory report showed the following values for the products under review. Which items would you classify as being A...
-
Dr. Bold has a personal automobile policy with liability limits as follows: $100,000/$300,000 BI and $50,000 PD. Dr. Bold is held liable in an accident in which he must pay for bodily injuries as...
-
Sketch a scatter-plot, identifying quadrants relative to the sample means as in Figure 12.5, for which (a) The slope and correlation would be negative and (b) The slope and correlation would be...
-
1. Battery is unpermitted, unprivileged, intentional contact with anothers person. In a physician-patient relationship, how does a physician receive consent to touch the body of a patient? 2. Could...
-
Calculate the inductance of a 2000 -winding cylindrical solenoid that is \(0.20 \mathrm{~m}\) long if the radius of each winding is \(0.030 \mathrm{~m}\).
-
A corporation has two departments that produce two separate product lines. The company has been implementing total quality management over the past year. Revenue and costs of quality for that year...
-
a) Having graduated with a bachelor of commerce finance option, you have been requested to discuss with other employees in finance department on three ways that are used to describe real estate....
-
On January 1, the Wiek Company contracted with its president, T. Mae, to make a single deposit immediately to establish a fund with a trustee that pays Mae $40,000 per year for each of the three...
-
Use Stokes' Theorem to evaluate F. dr where F(x, y, z) = xi + yj + 7x + y? )k and C is the boundary of the part of the paraboloid where z = 9 - x - y which lies above the xy-plane and C is oriented...
-
How is relative centrifugal force calculated? 2 1.18 X 105 x rx rpm a. -5 2 b. 1.18 X 105 xr x rpm 105 x r x rpm c. 1.18 X d. 1.18 X 105 x r x rpm
-
The specialist whose duties fall into the areas of planning, implementation, operation, and security is the data administrator database specialist systems analyst database administrator
-
C M L1 O F1=? B L2 F2=? A L1=130mm L2=90mm m=180N F1=? F2=?
-
The Quiet Meadow Studio sells photographs and prints. It costs $20 to purchase each photograph and it takes 2 hours to frame it. It costs $25 to purchase a print and it takes 5 hours to frame it. The...
-
|F=? L1 L2 G A L1=300mm L2=120mm G=70N F=?
-
7. Shepherd Management has total debt of $6,800 and a debt- equity ratio of .36. What is the value of the total assets? A) $18,889 B) $24,480 C) $23,520 D) $25,689 E) $25,360
-
If someone's Z-score for a variable was 0.67. Their score is a significant extreme score. Their score is not significant. O Their score is slightly above average. O Their score is an outlier.
-
You are studying survival times for mice given a drug at one of three doses (Low, Medium, or High). You define two dummy variables: (a) With these definitions, write the expressions for the mean...
-
The data in Table 8.25 were collected in order to study factors affecting the supply and demand for commercial air travel. Data on various aspects of commercial air travel for an arbitrarily chosen...
-
We have data on the distance covered by irrigation water in a furrow of a field. The data are to be used to relate the distance covered to the time since watering began. The data are given in Table...
Study smarter with the SolutionInn App