Exercise 10-7 Ceradyne Industrial has estimated that production for the next fiv
ID: 2565493 • Letter: E
Question
Exercise 10-7 Ceradyne Industrial has estimated that production for the next five quarters will be Production Information 1st quarter, 2017 2nd quarter, 2017 3rd quarter, 2017 4th quarter, 2017 1st quarter, 2018 46,000 units 41,000 units 49,000 units 40,000 units 48,000 units Finished units of production require 10 pounds of raw material per unit. The raw material cost is $4 per pound. There is $184,000 of raw material on hand at the beginning of the first quarter, 2017. Ceradyne desires to have 10 percent of next quarter's material requirements on hand at the end of each quarter Prepare quarterly direct materials purchases budgets for Ceradyne Industrial for 2017 Ceradyne Industrial Direct Materials Purchases Budget For the Year Ending December 31, 2017 Quarter1 Quarter 2 Quarter3 Quarter4 YearExplanation / Answer
Ceradyne Industrial Direct material Purchase Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Units to be produced 46,000 41,000 49,000 40,000 176,000 No Pounds requiered Per units 10 10 10 10 10 Total pounds of materials requiered 460,000 410,000 490,000 400,000 1,760,000 Cost Per Pound 4 4 4 4 4 Cost of direct material for Production 1,840,000 1,640,000 1,960,000 1,600,000 7,040,000 Desired ending inventory 164,000 196,000 160,000 192,000 712,000 Total Needed 2,004,000 1,836,000 2,120,000 1,792,000 7,752,000 Begning Inventory 184,000 164,000 196,000 160,000 704,000 Cost of Purchases 1,820,000 1,672,000 1,924,000 1,632,000 7,048,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.