Class Problem - The Budgeting Process - Answer

Class Problem - The Budgeting Process - Answer - units...

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ACII Class Problem The Budgeting Proces s 1. Harrisburg Manufacturing produces three products requiring the following inputs of raw materials: Units of Materials Required Product Fabric Metal Jade 2 1 Kolia 1 2 Lymon 2 1 Unit cost and inventory for each raw material: Fabric Metal Unit cost $3 $2 Beginning inventory 10,000 8,000 Ending inventory 9,000 6,000 Scheduled production: Jade: 20,000 Kolia: 10,000 Lymon: 30,000 Prepare a direct materials purchases budget for the year ended December 31, 2010. Correct Answer: Harrisburg Manufacturing Direct Materials Purchases Budget For the Year Ended December 31, 2010 Direct Materials Fabric Metal Product jade finished
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Unformatted text preview: units 20,000 20,000 Direct materials per unit 2 1 40,000 20,000 Product kolia finished units 10,000 10,000 Direct materials per unit 1 2 10,000 20,000 Product lymon finished units 30,000 30,000 Direct materials per unit 2 1 60,000 30,000 Production needs in direct materials units 110,000 70,000 Add desired ending inventory 9,000 6,000 119,000 76,000 Less beginning inventory 10,000 8,000 Direct materials purchases in units 109,000 68,000 Cost per direct materials unit $3 $2 Total direct materials purchases cost $327,000 $136,000...
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This note was uploaded on 02/02/2012 for the course ECON 125 taught by Professor Ho during the Summer '10 term at San Diego State.

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Class Problem - The Budgeting Process - Answer - units...

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