BUSINESS COLLEGE

Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It plans production of 240,000 units in the second quarter and 52,500 units in the third quarter. Raw material inventory is 43,200 pounds at the beginning of the second quarter. Other information follows:Direct materials Each unit requires 0.60 pounds of a key raw material, priced at $175 per pound. The company plans to end each quarter with an ending inventory of materials equal to 30% of next quarter’s budgeted materials requirements.
Prepare a direct materials budget for the second quarter.

Answers

Answer 1
Answer:

Answer and Explanation:

The Preparation of direct materials budget for the second quarter is prepared below:-

                                          Rida, Inc.,

                                 Direct materials budget  

                                 For the second quarter

Particulars                                            Amount

Production Unit                                    240,000

Raw material per unit                           0.60

Raw material needed for production 144,000

(240,000 × 0.60)

Add: Desired ending inventory          9,450

(52,500 × 0.6 × 30%)  

Total amount                                       153,450

Less: Beginning inventory                  ($43,200)

Direct material purchase                    $110,250

Cost per pound                                    $175

Direct material purchase cost          $19,293,750

Therefore to reach at direct material purchase cost we simply multiply the direct material purchase cost with cost per pound.

Related Questions

Burcham Corporation reported pretax book income of $752,500. Tax depreciation exceeded book depreciation by $620,000. In addition, the company received $320,000 of tax-exempt municipal bond interest. The company’s prior-year tax return showed taxable income of $117,000. Compute the company’s book equivalent of taxable income. Use this number to compute the company’s total income tax provision or benefit.
The most powerful and widely used conceptual tool for diagnosing the principal competitive pressures in a market isa. the five forces framework.b. PESTEL.c. the driving forces model.d. strategic group mapping.e. SWOT analysis.
William owns 1 share of Park stock. He purchased the stock three years ago for $17.50. The stock is currently trading for $40 per share. The stock has paid the following dividends over the past three years. o Year 1: $1.00. o Year 2: $2.00. o Year 3: $3.00. What is the compounded rate of return (IRR) that William has earned on this investment
Climate change is expected to have a major impact on local weather patterns across the United States (and the world). Use a spatial equilibrium model for simple system of two cities to predict the effect of climate change on 1) A place where climate change lowers that amenity value of the local climate (call this place Miami) and 2) A place where climate change does not change the local amenity value (call this place Chicago). Which of the following best describes the prediction of your model?A. Real estate prices in Miami will rise, real estate prices in Chicago will fall.B. Real estate prices in Miami will fall, real estate prices in Chicago will fall.C. Real estate prices in Miami will rise, real estate prices in Chicago will rise.D. Real estate prices in Miami will fall, real estate prices in Chicago will rise.E. None of the above.
Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $24,700 and variable expenses of $6,175. Product Y45E had sales of $35,280 and variable expenses of $15,876. The fixed expenses of the entire company were $17,300. If the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company: Multiple Choice could increase or decrease. would increase. would decrease. would not change.

Suppose you bought 200 shares of stock at an initial price of $52 per share. The stock paid a dividend of $0.44 per share during the following year, and the share price at the end of the year was $36. What is the percentage capital gains yield

Answers

Answer:

We can find the capital gains yield from the following formula:

Capital Gains Yield =  Increase or decrease in the share price divided by Original cost of the shares when purchased

By putting values

Capital Gains Yield = ($52 - $36)/$52 = -30.7%

Explanation:

We can see that there is a decrease in the share price and this is also evident form the capital gains yield formula.

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 28,000 units, 100% complete as to materials and 60% complete as to conversion. Units started and completed: 116,000. Units completed and transferred out: 144,000. Ending Inventory: 31,500 units, 100% complete as to materials and 25% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $46,000. Costs in beginning Work in Process - Conversion: $51,850. Costs incurred in February - Direct Materials: $316,730. Costs incurred in February - Conversion: $602,150. Calculate the cost per equivalent unit of conversion.

Answers

Answer:

Cost per equivalent unit = 4.015 per unit

Explanation:

Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.

Cost per equivalent unit = cost / total equivalent units

To determine the conversion cost per equivalent unit, we follow the steps below

Step 1

Determine the total equivalent units

Items                         units                                             Equivalent units

Completed units       144,000      144,000× 100%     144,000

Closing inventory      31,500        31,500 × 60% =     18900

Total equivalent unit                                                   162,900

Step 2

Calculate cost per equivalent unit

Cost per equivalent unit = Total conversion cost/Total equivalent units

                                        = (602,150+ 51,850)/162,900 units

                                         = 4.015 per units

A bond has a standard deviation of 10.7 percent and an average rate of return of 6.4 percent. What is the coefficient of variation (CoV)

Answers

Answer:

CoV = 1.671875 rounded off to 1.67

Explanation:

The coefficient of variation (CoV) is a measure of volatility of an investment. It tells the volatility in comparison with the expected return from the investment. We can say that the CoV tells us the risk per unit of return as CoV is calculated by dividing standard deviation, which is a measure of risk, by the expected return of the investment.

CoV = SD / r

Where,

  • SD is the standard deviation
  • r is the expected return

CoV = 0.107 / 0.064

CoV = 1.671875 rounded off to 1.67

Assume that your credit sales for March was $12,764,for April was $27,406 and May was $28,706. If credit sales are collected 55% during the month of sale, 25% the month following the sale, and 15% in the second month following the sale, what is the total expected cash collections to be received in May? Round your answer to one dollar.

Answers

Answer:

Total expected cash collections for May are $24554

Explanation:

The May's cash collections will include collections from March's credit sales worth 15% of March's sales, collections for April's credit sales worth 25% of April's credit sales and collections worth 55% of t=May's credit sales. Thus the collections are,

Collection for March's sales = 12764 * 0.15  =  $1914.6

Collection for April's sales = 27406 * 0.25 = $6851.5

Collection for May's sales = 28706 * 0.55 = $15788.3

Total expected cash collections for May = 1914.6  +  6851.5  +  15788.3

Total expected cash collections for May = $24554.4 rounded off to $24554

An increase in the supply of capital will: Group of answer choices increase the real rental price of capital. decrease the real rental price of capital. increase the productivity of capital. decrease the real interest rate.

Answers

Answer:

The correct answer is letter "B": decrease the real rental price of capital.

Explanation:

The supply of capital increases when individuals and organizations have received more income out of their labor activities or production processes. As a result, the need for requesting loans will decrease. Thus, banks and financial institutions will decrease their interest rates to promote loans which will decrease the rental price of capital.

Old Camp Company manufactures awnings for its own line of tents. The company is currently operating at capacity and has received an offer from one of its suppliers to make the 12,000 awnings it needs for $25 each. Old Camp’s costs to make the awning are $12 in direct materials and $7 in direct labor. Variable manufacturing overhead is 70 percent of direct labor. If Old Camp accepts the offer, $42,000 of fixed manufacturing overhead currently being charged to the awnings will have to be absorbed by other product lines.

Answers

Answer:

It is more convenient to continue the production in house.

Explanation:

Giving the following information:

The company is currently operating at capacity and has received an offer from one of its suppliers to make the 12,000 awnings it needs for $25 each. Old Camp’s costs to make the awning are $12 in direct materials and $7 in direct labor. Variable manufacturing overhead is 70 percent of direct labor. If Old Camp accepts the offer, $42,000 of fixed manufacturing overhead currently being charged to the awnings will have to be absorbed by other product lines.

Make in house:

Variable costs= 12 + 7 + (7*0.70)= $23.9

Total variable costs= 23.9*12000= 286,800

Buy= 25*12,000= $300,000

It is more convenient to continue the production in house.
Other Questions
Which of the following you should use if you expect the probability for an increase in pound value is greatee than that for decrease
This year, Barney and Betty sold their home (sales price $750,000; cost $200,000). All closing costs were paid by the buyer. Barney and Betty owned and lived in their home for 18 months. Assuming no unusual or hardship circumstances apply, how much of the gain is included in gross income
Cullumber Company purchases land for $185000 cash. Cullumber assumes $5200 in property taxes due on the land. The title and attorney fees totaled $3100. Cullumber has the land graded for $4100. They paid $25000 for paving of a parking lot. What amount does Cullumber record as the cost for the land?
The audit expectation gap occurs when there is a difference between the expectations of the ________. a. generally accepted accounting principles and auditors. b. auditors and company under review. c. auditors and financial statement users. d. company under review and financial statement users.