Asked by Petronel Ntimane on Apr 25, 2024
The budget components for Park Company for the quarter ended June 30 appear below. Park sells trash cans for $12 each. Budgeted sales and production for the next three months are: Sales Production April 20,000 units 26,000 units May 50,000 units 46,000 units June 30,000 units 29,000 units \begin{array}{lll}&\text {Sales}&\text { Production}\\\text { April } & 20,000 \text { units } & 26,000 \text { units } \\\text { May } & 50,000 \text { units } & 46,000 \text { units } \\\text { June } & 30,000 \text { units } & 29,000 \text { units }\end{array} April May June Sales20,000 units 50,000 units 30,000 units Production26,000 units 46,000 units 29,000 units Park desires to have trash cans on hand at the end of each month equal to 20 percent of the following month's budgeted sales in units. On March 31 Park had 4000 completed units on hand. Five pounds of plastic are required for each trash can. At the end of each month Park desires to have 10 percent of the following month's production material needs on hand. At March 31 Park had 13000 pounds of plastic on hand. The materials used in production cost $0.60 per pound. Each trash can produced requires 0.10 hours of direct labor.
Instructions
Determine how much the materials purchases budget will be for the month ending April 30.
Materials Purchases Budget
An estimation of the total cost of materials required for production, planned for a specific period.
Direct Labor
The cost of wages for employees who are directly involved in producing goods or providing services.
- Determine the essential purchases and expenditures for direct materials, merchandise, and additional budget segments using specific data.
Learning Objectives
- Determine the essential purchases and expenditures for direct materials, merchandise, and additional budget segments using specific data.