ABC manufactures a product requiring 0.5 ounces of platinum per unit. The cost of platinum isapproximately $150 per ounce; the company maintains an ending platinum inventory equal to 10% ofthe following month's production usage. The following data were taken from the most recentquarterly production budget:JULY AUGUST SEPTEMBERPlannedProduction in 1,200 1,3091,180unitsThe cost of platinum to be purchased to support August production is:Enter your response without a $ sign or comma, and round to the nearest whole number.You Answered107,025Correct Answer97,208 margin of error +/- 0.5%

The above answer can be explained as under -The cost of platinum to be purchased in August -The…

Answered: ABC manufactures a product requiring…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Northwest manufactures a product requiring 05 ounces of platinum per unit. The cost of platinum is approximately $360 per ounce, the company maintains an ending platinum inventory equal to 10% of the following month's production usage. The following data were taken from the most recent querterly production budget July August 1,100 September Planned production in units 1.000 980 The cost of platinum to be purchased to support August production is $195,840 O $198,000. O $200,160.
BEVERLY HILLS manufactures a product requiring 0.5 kilos of platinum per unit. The cost of platinum is approximately P360 per kilos; the company maintains an ending platinum inventory equal to 10% of the following month's production usage. The following data were taken from the most recent quarterly production budget: July August September Planned production (units) 1,000 1,100 980 The cost of platinum to be purchased to support August production is:
Acmal Manufacturing Company is estimating the following raw material purchases for the last four months of the year: September P850,000; October P900,000; November P810,000; December P780,000. At Acmal, 25% of raw materials purchases are normally paid for in the month of purchase. The remaining 75% is paid for in the month following the purchase. How much cash should Acmal expect to pay out for raw material purchases during the month of November? 202,500 832,500 852,500 877,500
The Simmons Company finished their sales projections for the coming year. The company produces one product. Part of next year's sales projections are as follows. Projected Sales in Units July 125,000 August 145,000 September 139,000 October 155,000 November 180,000 The budget committee has also completed the following information on inventories. Raw Materials Ending Balance, June, 50,000 lbs Desired ending levels (monthly 10% of next month's production needs) Work-In-Progress None Finished Goods Inventory Ending Balance, June, 22,000 units Desired ending levels: 20% of next month's sales The Engineering Department has developed the following standards upon which the production budgets will be developed. Item Standard Material usage 3 pounds per unit Material price per pound $2.00 per pound Labor usage 0.5 hours per unit Labor rate $40 per hour Machine hours 2 machine hours per unit The Simmons Company uses a modified allocation method for…
MD Manufacturing Company is estimating the following raw material purchases for the last four months of the year: September. October. November. . December. Php 850,000 900,000 810,000 780,000 At MD, 25% of raw materials purchases are normally paid for in the month of purchase. The remaining 75% is paid for in the month following the purchase. In MD's budgeted balance sheet at December 31, at what amount will accounts payable be shown? (Assume that accounts payable is only used for raw material purchases.)
The Simmons Company finished their sales projections for the coming year. The company produces one product. Part of next year's sales projections are as follows. Projected Sales in Units July 125,000 August 145,000 September 139,000 October 155,000 November 180,000 The budget committee has also completed the following information on inventories. Raw Materials Ending Balance, June, 50,000 lbs Desired ending levels (monthly 10% of next month's production needs) Work-In-Progress None Finished Goods Inventory Ending Balance, June, 22,000 units Desired ending levels: 20% of next month's sales The Engineering Department has developed the following standards upon which the production budgets will be developed. Item Standard Material usage 3 pounds per unit Material price per pound $2.00 per pound Labor usage 0.5 hours per unit Labor rate $40 per hour Machine hours 2 machine hours per unit The Simmons Company uses a modified allocation method for…
following month's production needs (number of units that should be produced next month). • Raw material cost is $0.60 per foot of Gilden. • The beginning balance of raw materials for August will be 100,000 feet of Gilden. • 50% of a month's purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. • The accounts payable balance on August 1 for purchases of Gilden during July will be $80,400. Answer the following questions: 1. What is the August sales budget in dollars? 2. How much money will Milo collect during the month of August? 3. How many units should be produced in the month of August? 4. How many feet of raw materials (Gilden) should be purchased in August? 5. What will be the cost of raw materials for the month of August? 6. What will be the cash disbursements in August? Enter you answers in the same order as above.
Expected unit sales (frames) for the upcoming months follow: March April May June July August 295 290 340 440 415 465 Variable manufacturing overhead is incurred at a rate of $0.20 per unit produced. Annual fixed manufacturing overhead is estimated to be $9,000 ($750 per month) for expected production of 5,000 units for the year. Selling and administrative expenses are estimated at $800 per month plus $0.50 per unit sold. Iguana, Incorporated, had $11,800 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credit sales, 50 percent is collected during the month of the sale, and 50 percent is collected during the month following the sale. Of direct materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Direct materials purchases for March 1 totaled $2,600. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $190 in depreciation. During April, Iguana…
Lindor Enterprises projects sales for the first three months of the year to be: $10,400 in January, $12,500 in February, and $13,100 in March. Cash receipts are expected to be: $8,580 in January, $11,820 in February, and $12,700 in March.They anticipate the following cash payments: Lindor Enterprises January February March Direct materials purchased $3,600 $4,200 $4,700 Direct labor costs $3,300 $4,000 $3,500 Depreciation on plant $570 $570 $570 Utilities for plant $650 $650 $650 Property taxes on plant $170 $170 $170 Depreciation on office $580 $580 $580 Utilities for office $350 $350 $350 Property taxes on office $180 $180 $180 Office salaries $3,000 $3,000 $3,000 All costs are paid in the month incurred except: direct materials, which are paid in the month following the purchase; utilities, which are paid in the month after incurred; and property taxes, which are prepaid for the year on January 2. The Accounts Payable and Utilities Payable accounts have a…
Lindor Enterprises projects sales for the first three months of the year to be: $10,100 in January, $12,400 in February, and $12,900 in March. Cash receipts are expected to be: $8,450 in January, $11,770 in February, and $12,810 in March.They anticipate the following cash payments: Lindor Enterprises January February March Direct materials purchased $3,500 $4,000 $4,900 Direct labor costs $3,000 $4,100 $3,600 Depreciation on plant $510 $510 $510 Utilities for plant $650 $650 $650 Property taxes on plant $140 $140 $140 Depreciation on office $560 $560 $560 Utilities for office $370 $370 $370 Property taxes on office $170 $170 $170 Office salaries $2,900 $2,900 $2,900 All costs are paid in the month incurred except: direct materials, which are paid in the month following the purchase; utilities, which are paid in the month after incurred; and property taxes, which are prepaid for the year on January 2. The Accounts Payable and Utilities Payable accounts have a…
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year Ast Quarter 10, 400 Quarter 8, 000 3rd Quarter 6, 200 th Quaeter Units to be produced 10, 500 Each unit requires 0.35 direct labor-hours, and direct loborers ere paid S14.00 per hour. Required: 1. Prepore the company's direct labor budget for the upcoming fiscal year (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Rordan Corporason Drect Lacor Budget 1st Quarter 2nd Quarter Srd Quaner 4th Quarter Year Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost
Lindor Enterprises projects sales for the first three months of the year to be: $10,400 in January, $12,500 in February, and $13,100 in March. Cash receipts are expected to be: $8,580 in January, $11,820 in February, and $12,700 in March.They anticipate the following cash payments: Lindor Enterprises January February March Direct materials purchased $3,600 $4,200 $4,700 Direct labor costs $3,300 $4,000 $3,500 Depreciation on plant $570 $570 $570 Utilities for plant $650 $650 $650 Property taxes on plant $170 $170 $170 Depreciation on office $580 $580 $580 Utilities for office $350 $350 $350 Property taxes on office $180 $180 $180 Office salaries $3,000 $3,000 $3,000 All costs are paid in the month incurred except: direct materials, which are paid in the month following the purchase; utilities, which are paid in the month after incurred; and property taxes, which are prepaid for the year on January 2. The Accounts Payable and Utilities Payable accounts have a…

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