Author Question: Picture Pretty manufactures picture frames. Sales for August are expected to be 10,000 units of ... (Read 141 times)

V@ndy87

  • Hero Member
  • *****
  • Posts: 571
Picture Pretty manufactures picture frames. Sales for August are expected to be 10,000 units of various sizes. Historically, the average frame requires four feet of framing, one square foot of glass, and two square feet of backing.
 
  Beginning inventory includes 1,500 feet of framing, 500 square feet of glass, and 500 square feet of backing. Current prices are 0.90 per foot of framing, 8.00 per square foot of glass, and 4 per square foot of backing. Ending inventory of materials should be 150 of beginning inventory. Purchases are paid for in the month acquired.
 
  Required:
  a. Determine the quantity of framing, glass, and backing that is to be purchased during August.
  b. Determine the total costs of direct materials for August purchases.

Question 2

When the end-of-period spreadsheet is complete, the adjustment columns should have
 a. total credits greater than total debits if a net income was earned
  b. total debits greater than total credits if a net loss was incurred
  c. total debits greater than total credits if a net income was earned
  d. total debits are equal to total credits



ryhom

  • Sr. Member
  • ****
  • Posts: 366
Answer to Question 1

Answer:
a. Framing Glass Backing
Desired ending inventory 2,250 750 750
Production needs (10,000 units) 40,000 10,000 20,000

Total needs 42,250 10,750 20,750
Less: Beginning inventory 1,500 500 500

Purchases planned 40,750 10,250 20,250

b. Cost of direct materials:
Framing (40,750  0.90) 36,675.00
Glass (10,250  8.00) 82,000.00
Backing (20,250  4) 81,000.00

Total 199,675.00

 1,500  1.5 = 2,250 framing
500  1.5 = 750 glass
500  1.5 = 750 backing

 10,000  4 feet of framing = 40,000 feet of framing
10,000  1 square foot of glass = 10,000 square feet of glass
10,000  2 square feet of backing = 20,000 square feet of backing

Answer to Question 2

d



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

ryhom

  • Sr. Member
  • ****
  • Posts: 366

 

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

For a complete list of videos, visit our video library