Purple Co.'s production budget for Product X for the year ending December 31 is as follows: Product X Expected units to be sold 640,000 Desired ending inventory, December 31 85,000 Total units available 725,000 Estimated beginning inventory, January 1 (90,000) Total units to be produced 635,000 In Purple's production operations, Materials A, B, and C are required to make Product X. The quantities of direct materials expected to be used for each unit of product are as follows: Product X Material A 0.50 lb. per unit Material B 1.00 lb. per unit Material C 1.20 lbs. per unit The prices of direct materials are as follows: Material A $0.60 per pound Material B $1.70 per pound Material C $1.00 per pound Prepare a direct materials purchases budget for Product X, assuming that there are no beginning or ending inventories for direct materials (all units purchased are used in production). Round unit price to two decimal places and the remaining answers to the nearest whole dollar. Purple Co. Direct Materials Purchases Budget For the Year Ending December 31 Direct Materials A B C Total Units required for production of Product X fill in the blank 1 lbs. fill in the blank 2 lbs. fill in the blank 3 lbs. Unit price $fill in the blank 4
Purple Co.'s production budget for Product X for the year ending December 31 is as follows: Product X Expected units to be sold 640,000 Desired ending inventory, December 31 85,000 Total units available 725,000 Estimated beginning inventory, January 1 (90,000) Total units to be produced 635,000 In Purple's production operations, Materials A, B, and C are required to make Product X. The quantities of direct materials expected to be used for each unit of product are as follows: Product X Material A 0.50 lb. per unit Material B 1.00 lb. per unit Material C 1.20 lbs. per unit The prices of direct materials are as follows: Material A $0.60 per pound Material B $1.70 per pound Material C $1.00 per pound Prepare a direct materials purchases budget for Product X, assuming that there are no beginning or ending inventories for direct materials (all units purchased are used in production). Round unit price to two decimal places and the remaining answers to the nearest whole dollar. Purple Co. Direct Materials Purchases Budget For the Year Ending December 31 Direct Materials A B C Total Units required for production of Product X fill in the blank 1 lbs. fill in the blank 2 lbs. fill in the blank 3 lbs. Unit price $fill in the blank 4
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 3BE
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Question
Purple Co.'s production budget for Product X for the year ending December 31 is as follows:
Product X | ||
Expected units to be sold | 640,000 | |
Desired ending inventory, December 31 | 85,000 | |
Total units available | 725,000 | |
Estimated beginning inventory, January 1 | (90,000) | |
Total units to be produced | 635,000 |
In Purple's production operations, Materials A, B, and C are required to make Product X. The quantities of direct materials expected to be used for each unit of product are as follows:
Product X |
Material A 0.50 lb. per unit |
Material B 1.00 lb. per unit |
Material C 1.20 lbs. per unit |
The prices of direct materials are as follows:
Material A $0.60 per pound |
Material B $1.70 per pound |
Material C $1.00 per pound |
Prepare a direct materials purchases budget for Product X, assuming that there are no beginning or ending inventories for direct materials (all units purchased are used in production). Round unit price to two decimal places and the remaining answers to the nearest whole dollar.
Purple Co. Direct Materials Purchases Budget For the Year Ending December 31 |
||||
Direct Materials | ||||
A | B | C | Total | |
Units required for production of Product X | fill in the blank 1 lbs. | fill in the blank 2 lbs. | fill in the blank 3 lbs. | |
Unit price | $fill in the blank 4 | $fill in the blank 5 | $fill in the blank 6 | |
Total direct materials purchases | $fill in the blank 7 | $fill in the blank 8 | $fill in the blank 9 | $fill in the blank 10 |
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