Question

Question 4 A sales budget is given below for one of the products manufactured by Dollie (Pty) Ltd: Month Sales Budget in Units July 18,000 August 20,000 September 24,000 October 26,000 November 19,000 December 16,000 (6 Marks The inventory of finished goods at the end of each month must be equal to 5,000 units plus 10% of the next month's sales. On June 30, the finished goods inventory totaled 6,800 units. Each unit of product requires three kilograms of a special substance extract known as QP-10. Sometimes the substance is in short supply; for this reason, the company has a policy of maintaining an inventory at the end of each month equal to one half of the next month's production needs. This requirement was met on July 1 of the current year. Required: Prepare a budget showing the quantity of QP-10 to be purchased for September. SHOW ALL CALCULATIONS CLEARLY. ANSWER IN THE SPACE PROVIDED BELOW. ONLY ANSWERS IN THIS SPACE WILL BE MARKED. Direct Materials budget 

          Question 4
A sales budget is given below for one of the products manufactured by Dollie (Pty) Ltd:
Month
Sales Budget
in Units
July
18,000
August
20,000
September
24,000
October
26,000
November
19,000
December
16,000
(6 Marks
The inventory of finished goods at the end of each month must be equal to 5,000 units plus 10% of the next month's sales. On
June 30, the finished goods inventory totaled 6,800 units.
Each unit of product requires three kilograms of a special substance extract known as QP-10. Sometimes the substance is in short
supply; for this reason, the company has a policy of maintaining an inventory at the end of each month equal to one half of the
next month's production needs. This requirement was met on July 1 of the current year.
Required:
Prepare a budget showing the quantity of QP-10 to be purchased for September.
SHOW ALL CALCULATIONS CLEARLY. ANSWER IN THE SPACE PROVIDED BELOW. ONLY ANSWERS IN THIS SPACE WILL BE MARKED.
Direct Materials budget
Show more…
Question 4 A sales budget is given below for one of the products manufactured by Dollie (Pty) Ltd: Month Sales Budget in Units July 18,000 August 20,000 September 24,000 October 26,000 November 19,000 December 16,000 (6 Marks The inventory of finished goods at the end of each month must be equal to 5,000 units plus 10% of the next month's sales. On June 30, the finished goods inventory totaled 6,800 units. Each unit of product requires three kilograms of a special substance extract known as QP-10. Sometimes the substance is in short supply; for this reason, the company has a policy of maintaining an inventory at the end of each month equal to one half of the next month's production needs. This requirement was met on July 1 of the current year. Required: Prepare a budget showing the quantity of QP-10 to be purchased for September. SHOW ALL CALCULATIONS CLEARLY. ANSWER IN THE SPACE PROVIDED BELOW. ONLY ANSWERS IN THIS SPACE WILL BE MARKED. Direct Materials budget

Added by Soledad M.

Close

Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
AceChat toggle button
Close icon
Ace pointing down

Please give Ace some feedback

Your feedback will help us improve your experience

Thumb up icon Thumb down icon
Thanks for your feedback!
Profile picture
A sales budget is given below for one of the products manufactured by Dollie (Pty Ltd): Sales Budget in Units: July - 18,000 August - 20,000 September - 24,000 October - 26,000 November - 19,000 December - 16,000 The inventory of finished goods at the end of each month must be equal to 5,000 units plus 10% of the next month's sales. On June 30, the finished goods inventory totaled 6,800 units. Each unit of product requires three kilograms of a special substance extract known as QP-10. Sometimes the substance is in short supply; for this reason, the company has a policy of maintaining an inventory at the end of each month equal to one-half of the next month's production needs. This requirement was met on July 1 of the current year. Required: Prepare a budget showing the quantity of QP-10 to be purchased for September. SHOW ALL CALCULATIONS CLEARLY. ANSWER IN THE SPACE PROVIDED BELOW. ONLY ANSWERS IN THIS SPACE WILL BE MARKED. Direct Materials Budget
Close icon
Play audio
Feedback
Powered by NumerAI
Ivan Kochetkov Kathleen Carty
Jennifer Stoner verified

Patha Sharma and 100 other subject Principles of Accounting educators are ready to help you.

Ask a new question
*

Labs

-

Want to see this concept in action?

NEW

Explore this concept interactively to see how it behaves as you change inputs.

View Labs
*

Recommended Videos

-
required-information-the-following-information-applies-to-the-questions-displayed-below-morganton-company-makes-one-product-and-has-provided-the-following-information-to-help-prepare-the-mas-62022

Morganton Company makes one product and has provided the following information to help prepare the master budget for its first four months of operations: The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 8,700, 18,000, 20,000, and 21,000 units respectively. All sales are on credit. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. The ending finished goods inventory equals 30% of the following month's unit sales. The ending raw materials inventory equals 20% of the following month's raw materials production needs. Each unit of finished goods requires 5 kilograms of raw materials. The raw materials cost $2.00 per kilogram. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours. The variable selling and administrative expense per unit sold is $1.90. The fixed selling and administrative expense per month is $68,000. According to the production budget, how many units should be produced in July? Required production units

Patha S.
morganton-company-makes-one-product-and-it-provided-the-following-information-to-help-prepare-the-master-budgeta-the-budgeted-selling-price-per-unit-is-65-budgeted-unit-sales-for-june-july-a-23504

Morganton company makes one product and it provided the following information to help prepare the master budget:A. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9300, 24,000, 26,000, and 27,000 units, respectively. All sales are on credit.B. 40% of credit sales are collected in the month of the sale in 60% in the following month.C. The ending finished goods inventory equals 30% of the following months unit sales.D. The ending Royal materials inventory equals 20% of the following months from materials produced production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 per pound.E. 30% of all materials purchases are paid for in the month of purchase and 70% in the following month.F. The direct labor wage rate is $14 per hour. Each unit of finished goods requires to direct labor-hours.G. The variable selling and administrative expense per unit sold is $1.90. The fixed selling and administrative expense per month is $63,000.3) what is the account receivable balance at the end of July?5) if 105,200 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?

Adi S.
lets-start-practicing-with-some-budget-problems-the-abc-company-had-a-finished-goods-inventory-of-55000-units-on-january-1-its-projected-sales-for-the-next-four-months-were-january-200000-un-93315

Let's start practicing with some budget problems. The ABC Company had a finished goods inventory of 55,000 units on January 1. Its projected sales for the next four months were: January - 200,000 units; February - 180,000 units; March - 210,000 units; and April - 230,000 units. The ABC Company wishes to maintain a desired ending finished goods inventory of 20% of the following month's sales. What should the budgeted production be for January? What should the budgeted production be for February? What should the budgeted production be for March? What should the budgeted production be for March 31?

Rahul M.
*

Recommended Textbooks

-
Horngren’s Cost Accounting

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition
achievement 1,176 solutions
Cost Accounting A Managerial Emphasis

Cost Accounting A Managerial Emphasis

Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan 14th Edition
achievement 1,879 solutions
Principles of Accounting Volume 1: Financial Accounting

Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper 1st Edition
achievement 1,563 solutions
*

Transcript

-
00:01 Hello students in this question we are given a few molecules and we need to find whether or not the molecules show intermolecular hydrogen bonding.
00:11 So the first molecule is dimethyl ether that is ch3 och3 so this one does not show intermole hydrogen bonding because there are no hydrogens present on the oxygen atom.
00:26 In the b part we have methane ch1 so this one also does not show any intermolecular bonding, intermolecular hydrogen bonding, because there are no electronegative ions in this compound...
Need help? Use Ace
Ace is your personal tutor. It breaks down any question with clear steps so you can learn.
Start Using Ace
Ace is your personal tutor for learning
Step-by-step explanations
Instant summaries
Summarize YouTube videos
Understand textbook images or PDFs
Study tools like quizzes and flashcards
Listen to your notes as a podcast
Continue solving this problem
Create a free account to:
  • View full step-by-step solution
  • Ask follow-up questions with Ace AI
  • Save progress and study later
Continue Free
Join the community

18,000,000+

Students on Numerade

Trusted by students at 8,000+ universities

Numerade

Get step-by-step video solution
from top educators

Continue with Clever
or



By creating an account, you agree to the Terms of Service and Privacy Policy
Already have an account? Log In

A free answer
just for you

Watch the video solution with this free unlock.

Numerade

Log in to watch this video
...and 100,000,000 more!


EMAIL

PASSWORD

OR
Continue with Clever