Purchase compute the budgeted production of product a

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Unformatted text preview: July 2008. purchase Compute the budgeted production of Product A. Chapter 6 Master Budget & Responsibility Accounting Responsibility Budgeted direct material purchase Crystal Company budgets sales of Product A at 200,000 units for July 2008. Crystal Production of one unit requires 3 pounds of wood and 2 gallons of glue. Actual beginning inventories and budgeted ending inventories for the month are as follows: are Product A Wood Wood Glue July 1 25,000 units 23,000 pounds 23,000 16,000 gallons July 31 8,000 units 19,000 pounds 21,000 gallons Compute the number of gallons of glue the company needs to purchase during Compute glue July 2008. Compute the budgeted purchases of glue in gallons. Compute Budgeted production usage, 183,000 * 2 + target ending inventory = total requirements - beginning inventory = budgeted purchases in gallons 366,000 21,000 387,000 (16,000) 371,000 Chapter 6 Master Budget & Responsibility Accounting Responsibility Direct manufacturing labor budget Ron Corporation manufactures tables that are sold to hote...
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