Author Question: The ________________ shows the financial position of a company. a. income statement b. balance ... (Read 83 times)

burton19126 · **on:** Jul 6, 2018

The ________________ shows the financial position of a company.
a. income statement
b. balance sheet
c. statement of owner's equity
d. none of the answers listed

Question 2

Direct materials purchases budget.

Inglenook Co. produces wine. The company expects to produce 2,500,000 two-liter bottles of Chablis in 2015. Inglenook purchases empty glass bottles from an outside vendor. Its target ending inventory of such bottles is 80,000; its beginning inventory is 50,000. For simplicity, ignore breakage. Compute the number of bottles to be purchased in 2015.

kingfahad97 · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

B

Answer to Question 2

Direct materials to be used in production (bottles) 2,500,000
Add target ending direct materials inventory (bottles) 80,000
Total requirements (bottles) 2,580,000
Deduct beginning direct materials inventory (bottles) 50,000
Direct materials to be purchased (bottles) 2,530,000