Please show work for each problem. Quarter Truck Production Beg Inv. Resin Swish

Question

Please show work for each problem.

Quarter Truck Production Beg Inv. Resin Swisher Toys is preparing its budget for 2017. Budgeted production of toy dump trucks for the year is given in the table. Budget-units Budget-lbs 420,000 500,000 900,000 380,000 450,000 810,000 324,000 250,000 Q1 2017 Q2-2017 Each truck requires 3 pounds of resin, which is used to produce the trucks. Each pound of resin costs $0.42. Budgeted resin inventories in lbs. are also given in the table. Prepare the direct materials budget by quarter and in total for 2017. Use the provided T- accounts to work out the material flows in pounds and then determine each quarter's purchase budget Q3 2017 Q4 -2017 Q1 -2018

Explanation / Answer

Each production of truck requires 3 pounds, so total amount of resin used in production of trucks are as follows

In the question, opening Resin in terms of lbs is given for each quarter, moreover opening inventory of qtr 2 is equal to closing inventory of Qtr 1, hence quarter purchase biudget is shown below

Budgeted Schedule is as follows

Quarter Truck Prodn Resin per truck Total Resin Used Q1 420000 3 lbs 1260000 lbs Q2 500000 3 lbs 1500000 lbs Q3 900000 3 lbs 2700000 lbs Q4 360000 3 lbs 1080000 lbs

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---