2. Al Nebras Company has budgeted production for next year as follows: 1st Year Q1 30,000 Q2 40,000 Q3 50,000 Q4 60,000 Production in Units Four pounds of material X are required for each unit produced. The company has a policy of maintaining a stock of material X on hand at the end of each quarter equal to 20% of the next quarter's production needs for material X. A total of 8,000 pounds of material X are on hand to start the year. Budgeted purchases of material A for the third quarter would be: A. 52,000 pounds B. 192,000 pounds C. 208,000 pounds D. 216,000 pounds

2. Al Nebras Company has budgeted production for next year as follows: 1st Year Q1 30,000 Q2 40,000 Q3 50,000 Q4 60,000 Production in Units Four pounds of material X are required for each unit produced. The company has a policy of maintaining a stock of material X on hand at the end of each quarter equal to 20% of the next quarter's production needs for material X. A total of 8,000 pounds of material X are on hand to start the year. Budgeted purchases of material A for the third quarter would be: A. 52,000 pounds B. 192,000 pounds C. 208,000 pounds D. 216,000 pounds

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

See similar textbooks

Similar questions

A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000
Each unit requires direct labor of 4.1 hours. The labor rate is $13.75 per hour and next years production is estimated at 75,000 units. What is the amount to be included in next years direct labor budget?
The Steele Corporation has budgeted production for next year as follows: Production in units Quarter O 63,200 pounds O 62,400 pounds O 56,800 pounds O 50,400 pounds First 10,000 Second 12,000 Third 16,000 Fourth 14,000 Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the third quarter would be:
2. Al Nebras Company has budgeted production for next year as follows: 1" Year QI Q2 Q3 Q4 Production in Units 30,000 40,000 50,000 60,000 Four pounds of material X are required for each unit produced. The company has a policy of maintaining a stock of material X on hand at the end of each quarter equal to 20% of the next quarter's production needs for material X. A total of 8,000 pounds of material X are on hand to start the year. Budgeted purchases of material A for the third quarter would be: A. 52,000 pounds В. 192,000 рounds C. 208,000 pounds D. 216,000 pounds
2. Al Nebras Company has budgeted production for next year as follows: 1st Year Q1 Q2 Q3 Q4 Production in Units 30,000 40,000 50,000 60,000 Four pounds of material X are required for each unit produced. The company has a policy of maintaining a stock of material X on hand at the end of each quarter equal to 20% of the next quarter's production needs for material X. A total of 8,000 pounds of material X are on hand to start the year. Budgeted purchases of material A for the third quarter would be: A. 52,000 pounds B. 192,000 pounds C. 208,000 pounds D. 216,000 pounds
The Tabby Company has budgeted production for next year as follows: First 14,000 10,000 Quarter Sales in Units Production in Units Second 12,000 12,000 Third 14,000 16,000 Fourth 16,000 14,000 Four kilograms of raw materials are required for each unit produced. At the start of the year, raw materials on hand total 5,000 kilograms. The raw materials inventory at the end of each quarter should equal 20% of the next quarter's production needs. What would be the budgeted purchases of raw materials in the third quarter? 65,600 kilograms. A) B) 56,800 kilograms. 62,400 kilograms. 63,200 kilograms. D)
2. Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $4,780,000 Quarter 2 5,690,000 Quarter 3 630,000 Quarter 4 8,200,000 In Shalimar’s experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are $5,080,000 and for the fourth quarter of the current year are $7,220,000. Required: Question Content Area 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. Quarter Cash Sales Credit Sales 3, current year $fill in the blank b0590a054f99004_1 $fill in the blank b0590a054f99004_2 4, current year fill in the blank…
Pablo Company has budgeted production for next year as follows: Quarter First Second Third Fourth Production in units 49,000 89,000 99,000 79,000 Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 20% of the next quarter's production needs for material A. A total of 39,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:
A company is preparing its production budget for product XY for the forthcoming year. Budgeted sales of product XY are 1,800 units. Opening inventory is 190 units and the company wants to reduce inventories at the end of the year by 10%. What is the budgeted number of units of product XY to be produced in the following year? OA. 1,392 O B. 1,781 OC. 1,488 OD. 1,600
Prestwich Company has budgeted production for next year as follows: Quarter First Second Third Fourth Production in units... 60,000 80,000 90,000 70,000 ........ Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be: A. 82,500 pounds B. 200,000 pounds C. 205,000 pounds D. 165,000 pounds
The total budgeted sales of Obaapa Ltd for April, the first month of the second quarter in 2021 were GHS950,000. Sales are expected to increase by GHS50,000 in each month. Cash sales for each month are GHS100,000 and the remaining are credit sales. All the products are sold at a mark up of the cost plus 25 per cent. On average, Obaapa Ltd collects 50 per cent of the credit sales in the month of sale and 45 per cent in the month following sales. The remainder is uncollectible. Determine the budgeted total cash receipt for each month of the second quarter of 2021 and the expected account receivables at the end of the quarter.
The Shawn Company had budgeted production for the year as follows: Quarter 1 3 Production in units 100,000 102,000 106,000 104,000 Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 Ibs. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in materials. Determine the Budgeted purchases of raw materials in the third quarter (in Ibs.):