« previous next »

Author Question: Budgeting material purchases. The Howell Company has prepared a sales budget of 43,000 finished ... (Read 124 times)

sam.t96

  • Hero Member
  • *****
  • Posts: 570
on: Jul 6, 2018
Budgeting material purchases.
 
  The Howell Company has prepared a sales budget of 43,000 finished units for a 3-month period. The company has an inventory of 11,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 19,000 units at the end of the succeeding quarter.
   It takes 4 gallons of direct materials to make one unit of finished product. The company has an inventory of 66,000 gallons of direct materials at December 31 and has a target ending inventory of 56,000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Howell Company purchase during the 3 months ending March 31?

Question 2

Errors can occur for which of the following reason(s)?
 a. Arithmetic
  b. Recording only half an entry
  c. Recording two debits and no credits
  d. Recording incorrect amounts
  e. All of the answers listed


Ddddd

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jul 6, 2018
Answer to Question 1

Production Budget:
Finished Goods
(units)
Budgeted sales 43,000
Add target ending finished goods inventory 19,000
Total requirements 62,000
Deduct beginning finished goods inventory 11,000
Units to be produced 51,000

Direct Materials Purchases Budget:
Direct Materials
(in gallons)
Direct materials needed for production (51,000  4) 204,000
Add target ending direct materials inventory 56,000
Total requirements 260,000
Deduct beginning direct materials inventory 66,000
Direct materials to be purchased 194,000

Answer to Question 2

E


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

sam.t96

  • Hero Member
  • *****
  • Posts: 570
Reply #2 on: Jul 6, 2018
Thank you


Ddddd

  • Sr. Member
  • ****
  • Posts: 334
Reply #3 on: Jul 6, 2018
No problemo


« previous next »
 

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

The locations of genetic material in animal and plant cells. The locations of genetic material in animal and plant cells.
A Subject Prepared for a Night’s Sleep in a Sleep Laboratory A Subject Prepared for a Night’s Sleep in a Sleep Laboratory
The world has been horrified recently at a U.S. Congress so polarized and paralyzed that it cannot p The world has been horrified recently at a U.S. Congress so polarized and paralyzed that it cannot p
Biologically Prepared Fear Biologically Prepared Fear
A company that sells sweatshirts finds that the profit can be modelled by P(s)= ... A company that sells sweatshirts finds that the profit can be modelled by P(s)= ...
An educational institution has total direct labor and material costs of $1964 per student. Its ... An educational institution has total direct labor and material costs of $1964 per student. Its ...
Video: Role of transport in a cell

For a complete list of videos, visit our video library