Comm 294 managerial accounting practice lab standard costs

Comm 294 managerial accounting practice lab standard costs...

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2. award: 5 out of 5.00 points Which of the following is NOT a benefit of budgeti... Which of the following is NOT a benefit of budgeting? It uncovers potential bottlenecks before they occur. It coordinates the activities of the entire organization by integrating the plans and objectives of the various parts. It provides benchmarks for evaluating subsequent performance. It ensures that accounting records comply with generally accepted accounting principles. 3. award: 5 out of 5.00 points There are various budgets within the master budget... There are various budgets within the master budget. One of these budgets is the production budget. Which of the following best describes the production budget? It summarizes the costs of producing units for the budget period. It details the required raw materials purchases. It details the required direct labour hours. It is calculated based on the sales budget and the desired ending inventory. 4. award: 17.50 out of 20.00 points PROBLEM 9-14 Production and Direct Materials Purchases Budgets [LO2] Franklin Products Limited manufactures and distributes a number of products to retailers. One of these products, SuperStick, requires Four kilograms of material D236 in the manufacture of each unit. The company is now planning raw materials needs for the third quarter July,
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August, and September. Peak sales of SuperStick occur in the third quarter of each year. To keep production and shipments moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 8,100 units plus 20% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 22,120 units. b. The raw materials inventory on hand at the end of each month must be equal to 40% of the following month’s production needs for raw materials. The raw materials inventory on June 30 for material D236 is budgeted to be 129,400 kilograms. c. The company maintains no work in process inventories. A sales budget for SuperStick for the last six months of the year follows. Budgeted Sales in Units July 60,200 August 75,100 September 105,200 October 53,100 November 30,100 December 15,040 Required: 1. Prepare a production budget for SuperStick for the months July, August, September, and October.
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  • Spring '09
  • AZIZ
  • Direct material price variance, direct materials purchases, synthetic rubber compound, SuperStick

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