ACC 117 Lecture Notes - Lecture 28: Direct Labor Cost, Fixed Cost, European Cooperation In Science And Technology

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redminnow421

26 Nov 2020

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Charlie Kent

ACC 117

Summer 2017

Introduction to Anthropology

Direct Materials Budget

○ Helps determined the materials to be purchased for the required level of production

and to maintain desired levels of ending inventory

○ Production Needs X Required Raw Materials/Unit = Raw Materials Needed +

Desired Ending Inventory of Raw Materials = Total Raw Materials Needed -

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Helps determined the materials to be purchased for the required level of production and to maintain desired levels of ending inventory. Production needs x required raw materials/unit = raw materials needed + Desired ending inventory of raw materials = total raw materials needed - Beginning raw materials needed = raw materials to be purchased x unit cost of. Raw materials = cost of raw materials to be purchased. Helps determine the number of labor hours to meet the production needs. Those who neglect can lead to shortages, etc. Required production x direct labor hours/unit = total direct labors needed x. Determine expected cash disbursements and predetermined overhead rate for the period. All costs for the production except dm and fl. Generally consists of variable & fixed costs. Helps determine the value of ending inventory. Value = unit product cost x number of units in ending inv. All cash inflows (except from financing activities) All cash outflows (except from financing activities)

Related Questions

DeWitt Industries has adopted the following production budgetfor the first 4 months of 2017.

Month	Units	Month	Units
January	10,240	March	5,150
February	8,340	April	4,130

Each unit requires 3 pounds of raw materials costing $2 per pound.On December 31, 2016, the ending raw materials inventory was 6,144pounds. Management wants to have a raw materials inventory at theend of the month equal to 20% of next monthâs productionrequirements.

Prepare a direct materials purchases budget by month for the firstquarter.

violetmule493

Please show all work , I need to see the stepscalculated out...Thank you!!

Morganton Company makes one product and it provided thefollowing information to help prepare the master budget for itsfour months of operations:

(a)	The budgeted selling price per unit is $60. Budgeted unit salesfor June, July, August, and September are 9,200, 23,000, 25,000,and 26,000 units, respectively. All sales are on credit.
(b)	Thirty-percent ofcredit sales are collected in the month of the sale and 70% in thefollowing month.
(c)	The ending finishedgoods inventory equals 20% of the following monthâs unitsales.
(d)	The ending raw materials inventory equals 10% of the followingmonthâs raw materials production needs. Each unit of finished goodsrequires 4 pounds of raw materials. The raw materials cost $2.50per pound.
(e)	Thirty-percent ofraw materials purchases are paid for in the month of purchase and70% in the following month.
(f)	The direct labor wage rate is $13 per hour. Each unit offinished goods requires two direct labor-hours.
(g)	The variable selling and administrative expense per unit sold is$1.80. The fixed selling and administrative expense per month is$62,000.

If 100,800 poundsof raw materials are needed to meet production in August, how manypounds of raw materials should be purchased in July?

Rawmaterials to be purchased

pounds

bluedeer170

White Corporation's budget calls for the following sales for next year:

Quarter 1 96,500 units Quarter 2 82,000 units Quarter 3 67,700 units Quarter 4 98,800

Each unit of the product requires 3 pounds of direct materials. The company's policy is to begin each quarter with an inventory of product equal to 5% of that quater's estimated sales requirements and an inventory of direct materials equal to 20% of that quarter's estimated direct materials requirements for production.

1. Determine the production budget for the second quarter:

Budgeted sales_____________

Desired ending inventory________________

Total units needed ___________________

Beginning inventory ____________________

Total units to produce__________________

2. Determine the materials purchases budget for the second quater:

Budgeted production _________________

Direct materials (lbs.) per unit produced ____________________

Direct materials needed in production

Desired ending inventory of direct materials (lbs.)_____________

Total direct materials needed ________________________

Beginning inventory of direct materials ___________________

Budgeted purchases of direct materials (lbs.) _______________

coralyellowjacket733

ACC 117 Lecture Notes - Lecture 28: Direct Labor Cost, Fixed Cost, European Cooperation In Science And Technology

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