question archive Exercise 24-06 a-b On January 1, 2020, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020 Sales units: First quarter 5,300; second quarter 6,300; third quarter 7,000
Exercise 24-06 a-b On January 1, 2020, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020 Sales units: First quarter 5,300; second quarter 6,300; third quarter 7,000
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Exercise 24-06 a-b On January 1, 2020, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020 Sales units: First quarter 5,300; second quarter 6,300; third quarter 7,000. Ending raw materials inventory: 40% of the next quarter's production requirements. Ending finished goods inventory: 25% of the next quarter's expected sales units. Third-quarter production: 7,730 units. The ending raw materials and finished goods inventories at December 31, 2019, follow the same percentage relationships to production and sales that occur in 2020.3 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $6 per pound Prepare a production budget by quarters for the 6-month period ended June 30, 2020. HARDIN COMPANY Production Budget For the Six Months Ending June 30, 2020 Quarter SEX hs 2
Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2020. HARDIN COMPANY Direct Materials Budget For the Six Months Ending June 30, 2020 Quarter 1 2 Six Months
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| HARDIN COMPANY | |||
| Production Budget | |||
| For six months ending June 30, 2020 | |||
| Quarter | |||
| 1 | 2 | Six Months | |
| Budgeted unit sales | 5,300 | 6,300 | |
| Add: Desired Ending inventory | 6,300*25% = 1,575 | 7,000*25% = 1,750 | |
| Total needs | 6,875 | 8,050 | |
| Less: Beginning inventory | 5,300*25% = 1,325 | 6,300*25% = 1,575 | |
| Required production in units | 5,550 | 6,475 | 12,025 |
| Direct Material Budget | |||
| For six months ending June 30, 2020 | |||
| Quarter | |||
| 1 | 2 | Six Months | |
| Units to be produced | 5,550 | 6,475 | |
| Direct materials per unit | 3 | 3 | |
| Total pounds needed for production | 5,550*3 = 16,650 | 6,475*3 = 19,425 | |
| Add: Desired Ending direct material | 19,425*40% = 7,770 | 7,730*40% = 3,092 | |
| Total Materials required | 24,420 | 22,517 | |
| Less: Beginning direct materials | 16,650*40% = 6,660 | 19,425*40% = 7,770 | |
| Direct materials purchases | 17,760 | 14,747 | |
| Cost per pound | $ 6 | $ 6 | |
| Total cost of direct materials purchases | $ 106,560 | $ 88,482 | $ 195,042 |
