Please do not give solution in image format thanku >Wehner Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 15 ounces of plastic costing $0.12 per ounce. Wehner molds the plastic into the proper shape.company has budgeted production of the housings for the next 4 months as follows:SeptemberUnits3,5004,400OctoberNovemberDecember4,8007,100Inventory policy requires that sufficient plastic be in ending monthly inventory to satisfy 30% of the following month's production needs. The Inventory of plastic at the beginning of July equals exactly the amountneeded to satisfy the inventory policy.Prepare a direct materials purchases budget for September, October, and November, showing purchases in units and in dollars for each month and in total. If required, round the total purchase cost to nearestwhole value.Wehner CompanyDirect Materials Purchases BudgetFor September, October, and NovemberLine Item DescriptionSeptember October November TotalUnits to be producedDirect materials per unit (ounces)Production needsDesired ending inventory (ounces)Total needs

Understanding the ScenarioWehner Company manufactures plastic items, including plastic housings for…

Answered: > Wehner Company produces plastic…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Soft and Silky, Inc., manufactures bedding sets. The budgeted production is for 53,000 comforters in the coming year. Each comforter requires 6 yards of material. The estimated January 1 beginning inventory is 31,000 yards. The desired ending balance is 30,000 yards of material. If the material costs $1.50 per yard, what is the materials budget for the coming year? a.$385,500 b.$478,500 c.$475,500 d.$477,000
1. Ashton Company produces Product A. Among the materials used are aluminum strips. According to the standards established based on the normal capacity level, three pieces of aluminum strips should be used for each product at a standard price of P0.60 per piece. For the month of November 2023, budgeted production was 5,100 units of Product A. During the month, however, records showed the following: Actual production: 4,000 units Aluminum strips purchased in November: 11,800 pieces at P0.62 Increase in inventory during November: 3,700 pieces For the aluminum strips, compute the following (show your solution): a. Budgeted quantity b. Budgeted cost c. Actual cost d. Standard quantity e. Standard cost f. Standard cost variance g. Price variance h. Quantity variance 2. During the month, 1,200 units of Product LTK were produced. Actual direct labor hour required was 600 direct labor hours at an actual cost of $6,060. According to the standard cost card for the product, 0.6 of labor hour…
Magnolia, Inc., manufactures bedding sets. The budgeted production is for 22,100 comforters this year. Each comforter requires 7 yards of material. The estimated January 1 beginning inventory is 4,970 yards with the desired ending balance of 4,500 yards of material. If the material costs $6.50 per yard, determine the materials budget for the year.$fill in the blank 1
Use the following information for the Quick Study below. (Algo) Miami Solar manufactures solar panels for industrial use. The company budgets production of 5,100 units (solar panels).in July and 5,100 units in August. QS 20-9 (Algo) Manufacturing: Direct materials budget LO P1 Each unit requires 3 pounds of direct materials, which cost $7 per pound. The company's policy is to maintain direct materials inventory equal to 20% of the next month's direct materials requirement. As of June 30, the company has 3,060 pounds of direct materials in inventory. Prepare the direct materials budget for July. Units to produce MIAMI SOLAR Direct Materials Budget Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases July 5,100
A manufacturer of toy purchase components from subcontractors for assembly into complete toys. Each radio requires three units each of part X, which has a standard cost of P2.90 per unit. During August, the company had the following experience with respect to part X: Purchases P72,000 24,000 Units Consumed in manufacturing 20,000 units Toys Manufactured 6,000 what is the amount that will be shown on a flexible budget part x usage during the month of august?
Shalom Company manufactures Product Peace. Each unit requires 3 kilos of raw material at a cost of P1.80 per kilo. The company's budget for second quarter and July production is shown below: Units April May June July 13,500 12,400 11,200 12,000 Starting April, Shalom wants to maintain several kilos of raw material as ending inventory equal to 15% of the following month's production needs. The company wanted to implement this since last quarter, there were instances of stockouts of raw materials. At the end of first quarter, only 3,000 kilos were available. Amounts must be in whole numbers. Example: 88,000 or (88,000) Format of units/kilos: 88,000 KILOS (in whole numbers, one space after the number of units) Words must be in capital letters. Compute the cost of total purchases in quarter 2.
AMZ Corporation produces a single product that requires three yards of direct materials to produce each unit. AMZ has the following budgeted information related to this product for the next five months: August September October November December units to be produced 29,900 cost of direct materials to be purchased $359,985 $493,515 $319, 200 37,800 14,200 26,300 AMZ wants to maintain monthly ending inventories of direct materials equal to 70% of the next month's production needs. The cost of direct materials is $5 per yard. Calculate the number of units budgeted to be produced in September.
NiNa plc manufactures 1 product; XYZ. It uses materials A and B inproduction of XYZ. The Financial Director of Rain plc has asked for yourassistance in producing the cash budget for the month of September 2021.She has provided you with the following information extracted from thefunctional budgets:July August September OctoberSales (£) 9,250,000 10,360,000 12,950,000 14,245,000Production (unit) 50,000 56,000 70,000 77,000Material A purchase(£) 1,500,000 1,680,000 2,100,000 2,310,000Material B purchase(£) 500,000 560,000 700,000 770,000Direct labour cost (£) 2,400,000 2,688,000 3,360,000 3,696,000The following additional information has also been provided to you:• Sales are 20% cash, 80% credit. Credit sales are paid one month afterthe month of sale. NiNa plc allows a 1% cash discount on all of its cashsales and the firm does not anticipate any bad debt in the foreseeablefuture.• Payment to material A supplier is made in the month following purchaseand payment to material B supplier is…
6. Tettleton Corporation is a medium-sized furniture manufacturer. In order to manufacture its product, Tettleton purchases lumber and other supplies it needs in production from selected vendors. These vendors require Tettleton to pay for one-third of the supplies in the month of purchase; the remaining payment is due the following month. Tettleton pays according to this policy, since late payments are assessed additional interest charges. Assume that, based on the direct materials purchases budget, Tettleton expects to make purchases in the following amounts during the first quarter: January February. March... $24,000 $36,000 $21,000 In addition to these purchases. Tettleton expects to incur a total of $30,000 of other expenses each month. These expenses are paid as they are incurred. Prepare Tettleton's cash disbursements budget for the first quarter assuming that accounts payable related to purchases was $28,000 on December 31st.
6. Dauber Inc. budgeted production of 33,000 personal journals in 20Y6. Each journal requires assembly. Assume that four minutes are required to assemble each journal. If assembly labor costs $16.25 per hour, determine the direct labor cost budget for 20Y6. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar. $______
Shalom Company manufactures Product Peace. Each unit requires 3 kilos of raw material at a cost of P1.80 per kilo. The company's budget for second quarter and July production is shown below: April May June July Units 12,000 13,500 12,400 11,200 Starting April, Shalom wants to maintain several kilos of raw material as ending inventory equal to 15% of the following month's production needs. The company wanted to implement this since last quarter, there were instances of stockouts of raw materials. At the end of first quarter, only 3,000 kilos were available. Compute the cost of total purchases in quarter 2.
Harbour Inc. budgeted production of 258,000 personal journals in 20Y6. Paper is required to produce a journal. Assume 5 square yards of paper are required for each journal. The estimated January 1, 20Y6, paper inventory is 25,100 square yards. The desired December 31, 20Y6, paper inventory is 17,000 square yards. Paper costs $0.60 per square yard. Each journal requires assembly. Assume that 6 minutes are required to assemble each journal. Assembly labor costs $16.50 per hour. Prepare a cost of goods sold budget for Harbour Inc. using the information above. Assume the estimated inventories on January 1, 20Y6, for finished goods and work in process were $41,100 and $35,700, respectively. Also assume the desired inventories on December 31, 20Y6, for finished goods and work in process were $49,800 and $50,900, respectively. Factory overhead was budgeted at $197,200. Round your interim calculations to nearest cent, if required.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS