question archive Hurtt's Java Seeds is an independent roaster of specialty coffee beans
Hurtt's Java Seeds is an independent roaster of specialty coffee beans
Subject:AccountingPrice: Bought3
Hurtt's Java Seeds is an independent roaster of specialty coffee beans. The company budgets 2 months ahead, so that in early January, it is time to plan for March. During March, the company plans to sell 30,000 pounds of beans. At the end of February, the company expects to have 3,000 pounds of raw green coffee beans (costing $6,000) and 800 pounds of roasted beans (costing $4,500) in inventory. Hurtt's would like to have 1,100 pounds of green coffee beans and 500 pounds of roasted beans in inventory at the end of March. Hurtt's purchases green coffee beans from the grower at $2 per pound and sells the roasted beans for $14 per pound. Hurtt's roasters hold 25 pounds of green coffee beans. It takes 16 minutes to roast the beans to perfection. Because the roaster must be monitored by an employee at all times, each batch requires 0.29 direct labor hours. During the roasting process, the green beans lose 23% of their weight, so that 1.25 pounds of green (raw) beans must be used to produce 1 pound of roasted beans. The standard direct labor rate is $14 per direct labor hour. Variable overhead is applied at the rate of $87 per direct labor hour, and fixed overhead is budgeted at $13,096 per month, including $1,510 in equipment depreciation. Your answer is correct. Prepare Hurtt's sales budget for March. Budgeted pounds sold 30000 Budgeted sales price per pound $ 14 Budgeted sales revenue $ 420000 Your answer is correct. Prepare Hurtt's production budget for March. Budgeted roasted pounds sold 30000 Budgeted roasted beans ending inventory (pounds) 500 Roasted pounds needed 30500 Beginning inventory roasted beans 800 Budgeted roasted bean production (pounds) 29700 Prepare Hurtt's coffee bean purchases budget for March. (Round answers to 2 decimal places, e.g. 15.25.) Budgeted production 29700 Green beans per roasted pound 1.25 Green beans needed for production (pounds) 37125 Budgeted ending inventory of green beans 1100 Total green beans needed (pounds) 38225 Beginning green bean inventory (pounds) 3000 i PD Budgeted green bean purchases (pounds) 35225 Standard price per pound $ N Budgeted purchases $ 70450 Prepare Hurtt's direct labor budget for March. (Round answers to 2 decimal places, e.g. 15.25. Batches roasted 1,485.00 Direct labor hours per batch 0.29 Budgeted direct labor hours 430.65 Standard labor rate ta 14 Budgeted direct labor cost $ 6,029.10 Your answer is correct. Prepare Hurtt's overhead budget for March. (Round answers to 2 decimal places, e.g. 15.25.) Budgeted direct labor hours 430.65 Variable overhead rate per direct labor hour $ 87 Budgeted variable overhead $ 37466.55 Fixed overhead 13096 Budgeted overhead $ 50562.55 Compute Hurtt's ending inventory balances and cost of goods sold for March. (Round answers to 2 decimal places, e.g. 15.25.) Ending Finished Goods Inventory balance $ Cost of goods sold $
