Picture Pretty manufactures picture frames. Sales for August are ...

[V@ndy87]

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]

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

[V@ndy87]

Correct answers!

[ryhom]

Great! Please up vote