Vista Electronics, Inc. manufactures two different types of coils used in electr
ID: 2535099 • Letter: V
Question
Vista Electronics, Inc. manufactures two different types of coils used in electric motors. In the fall of the current year, Erica Becker, the controller, compiled the following data.
Sales forecast for 20x0 (all units to be shipped in 20x0):
Raw-material prices and inventory levels:
Use of raw material:
Direct-labor requirements and rates:
Finished-goods inventories (in units):
Production overhead:
Problem 9-39 Part 3
Prepare the raw material purchases budget (in quantities) for 20x0.
Product Units Price Light coil 60,000 $ 120 Heavy coil 40,000 170 3. Prepare the raw material purchases budget (in quantities) for 20x0. Raw Material Purchases Budget (in Quantities) for 20x0 Raw Material Sheet Metal Copper Wire Platform Light coils Heavy coils Production requirements Less: Desired inventories, December 31, 20x0 Total requirements Purchase requirements (units)Explanation / Answer
Solution:
Raw material purchases budget (in quantities) for 20X0
Sheet Metal
Copper Wire
Platform
Light Coil
260000
(65,000*4 lb)
130000
(65,000*2)
0
Heavy Coil
205000
(41,000*5)
123000
(41,000*3)
41000
(41000*1)
Production requirements
465000
253000
41000
Plus: Desired Inventories, Dec 31, 20X0
36000
32000
7000
Total Requirements
501000
285000
48000
Less: Beginning Inventories
32000
29000
6000
Purchase requirements (units)
469000
256000
42000
Note 1 --- Budgeted Production Units
Light Coil
Heavy Coil
Estimated Sales Units
60000
40000
Plus: Desired Inventories Dec 31, 20X0
25000
9000
Total
85000
49000
Less: Expected Inventories Jan 1, 20X0
20000
8000
Budgeted Production Units
65000
41000
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Raw material purchases budget (in quantities) for 20X0
Sheet Metal
Copper Wire
Platform
Light Coil
260000
(65,000*4 lb)
130000
(65,000*2)
0
Heavy Coil
205000
(41,000*5)
123000
(41,000*3)
41000
(41000*1)
Production requirements
465000
253000
41000
Plus: Desired Inventories, Dec 31, 20X0
36000
32000
7000
Total Requirements
501000
285000
48000
Less: Beginning Inventories
32000
29000
6000
Purchase requirements (units)
469000
256000
42000
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