n January 1, 2017, the Hardin Company budget committee has reached agreement on

Question

n January 1, 2017, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2017.

Sales units: First quarter 5,700; second quarter 6,100; third quarter 7,400
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: 7,850 units.

The ending raw materials and finished goods inventories at December 31, 2016, follow the same percentage relationships to production and sales that occur in 2017. 4 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $5 per pound.

Prepare a production budget by quarters for the 6-month period ended June 30, 2017.

HARDIN COMPANY
Production Budget

For the Six Months Ending June 30, 2017
June 30, 2017
For the Quarter Ending June 30, 2017
Quarter
1
2
Six Months

Beginning Direct Materials
Desired Ending Direct Materials
Direct Materials Purchases
Direct Materials Per Unit
Desired Ending Finished Goods Unit
Expected Unit Sales
Total Required Units
Beginning Finished Goods Unit
Required Production Units
Total Materials Required

Add
Less
:

Expected Unit Sales
Total Materials Required
Beginning Finished Goods Unit
Required Production Units
Desired Ending Direct Materials
Total Required Units
Beginning Direct Materials
Direct Materials Per Unit
Direct Materials Purchases
Desired Ending Finished Goods Unit

Desired Ending Direct Materials
Total Required Units
Required Production Units
Total Materials Required
Desired Ending Finished Goods Unit
Direct Materials Per Unit
Beginning Finished Goods Unit
Beginning Direct Materials
Direct Materials Purchases
Expected Unit Sales

Add
Less
:

Expected Unit Sales
Required Production Units
Direct Materials Purchases
Beginning Direct Materials
Direct Materials Per Unit
Desired Ending Finished Goods Unit
Total Materials Required
Total Required Units
Beginning Finished Goods Unit
Desired Ending Direct Materials

Expected Unit Sales
Required Production Units
Direct Materials Per Unit
Direct Materials Purchases
Beginning Finished Goods Unit
Total Materials Required
Beginning Direct Materials
Total Required Units
Desired Ending Direct Materials
Desired Ending Finished Goods Unit

Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2017.

HARDIN COMPANY
Direct Materials Budget

For the Six Months Ending June 30, 2017
June 30, 2017
For the Quarter Ending June 30, 2017
Quarter
1
2
Six Months

Direct Materials Per Unit
Beginning Direct Materials
Direct Materials Purchases
Total Materials Required
Total Cost of Direct Materials Purchases
Cost Per Pound
Desired Ending Direct Materials
Direct Labor Cost Per Hour
Units to be Produced
Direct Labor Time Per Unit
Total Direct Labor Cost
Total Pounds Needed for Production
Total Required Direct Labor Hours

Direct Labor Time Per Unit
Total Required Direct Labor Hours
Total Cost of Direct Materials Purchases
Direct Materials Purchases
Total Pounds Needed for Production
Total Direct Labor Cost
Beginning Direct Materials
Total Materials Required
Units to be Produced
Cost Per Pound
Direct Materials Per Unit
Desired Ending Direct Materials
Direct Labor Cost Per Hour

Direct Materials Per Unit
Direct Labor Cost Per Hour
Direct Labor Time Per Unit
Total Cost of Direct Materials Purchases
Beginning Direct Materials
Direct Materials Purchases
Cost Per Pound
Total Direct Labor Cost
Total Required Direct Labor Hours
Total Pounds Needed for Production
Total Materials Required
Units to be Produced
Desired Ending Direct Materials

Add
Less
:

Direct Labor Cost Per Hour
Direct Labor Time Per Unit
Direct Materials Purchases
Beginning Direct Materials
Direct Materials Per Unit
Cost Per Pound
Desired Ending Direct Materials
Total Cost of Direct Materials Purchases
Total Required Direct Labor Hours
Total Pounds Needed for Production
Total Direct Labor Cost
Total Materials Required
Units to be Produced

Total Direct Labor Cost
Total Materials Required
Beginning Direct Materials
Direct Materials Purchases
Total Pounds Needed for Production
Cost Per Pound
Desired Ending Direct Materials
Total Required Direct Labor Hours
Direct Materials Per Unit
Direct Labor Cost Per Hour
Direct Labor Time Per Unit
Units to be Produced
Total Cost of Direct Materials Purchases

Add
Less
:

Total Cost of Direct Materials Purchases
Units to be Produced
Desired Ending Direct Materials
Total Required Direct Labor Hours
Total Direct Labor Cost
Beginning Direct Materials
Cost Per Pound
Total Materials Required
Direct Labor Cost Per Hour
Total Pounds Needed for Production
Direct Materials Per Unit
Direct Labor Time Per Unit
Direct Materials Purchases

Units to be Produced
Direct Labor Cost Per Hour
Total Required Direct Labor Hours
Direct Labor Time Per Unit
Cost Per Pound
Total Materials Required
Total Pounds Needed for Production
Total Cost of Direct Materials Purchases
Beginning Direct Materials
Desired Ending Direct Materials
Direct Materials Purchases
Direct Materials Per Unit
Total Direct Labor Cost

Direct Labor Cost Per Hour
Units to be Produced
Total Pounds Needed for Production
Total Required Direct Labor Hours
Direct Labor Time Per Unit
Beginning Direct Materials
Direct Materials Per Unit
Cost Per Pound
Total Direct Labor Cost
Desired Ending Direct Materials
Direct Materials Purchases
Total Cost of Direct Materials Purchases
Total Materials Required
$ $

Direct Labor Cost Per Hour
Direct Labor Time Per Unit
Total Pounds Needed for Production
Total Materials Required
Total Required Direct Labor Hours
Desired Ending Direct Materials
Direct Materials Purchases
Direct Materials Per Unit
Total Cost of Direct Materials Purchases
Total Direct Labor Cost
Units to be Produced
Cost Per Pound
Beginning Direct Materials
$ $ $

Explanation / Answer

Production budget :

Direct material budget

Qtr 1 Qtr 2 six month (Total of both qtrs) Units sales 5700 6100 11800 Desired ending inventory 1525   [6100*.25] 1850   [7400*.25] 3375 Total units required 7225 7950 15175 Less: beginning inventory - 1425   [5700*.25] -1525 - 2950 Units to be produced 5800 6425 12225

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