We at Accounting Assignments Help provide Chapter 6- CengageNOWv2 Assignment help with step by step calculation and explanation 24*7 from our accounting experts.
Problem -1
Patrick Inc. makes industrial solvents. In the first four months of the coming year, Patrick expects the following unit sales:
| January | 41,000 |
| February | 38,000 |
| March | 50,000 |
| April | 51,000 |
Patrick’s policy is to have 25% of next month’s sales in ending inventory. On January 1, it is expected that there will be 6,700 drums of solvent on hand.
Required:
Prepare a production budget for the first quarter of the year. Show the number of drums that should be produced each month as well as for the quarter in total. If required, round your answers to the nearest whole unit.
Problem -2
Patrick Inc. makes industrial solvents sold in five-gallon drums. Planned production in units for the first three months of the coming year is:
| January | 43,800 |
| February | 41,000 |
| March | 50,250 |
Each drum requires 5.5 gallons of chemicals and one plastic drum. Company policy requires that ending inventories of raw materials for each month be 15% of the next month’s production needs. That policy was met for the ending inventory of December in the prior year. The cost of one gallon of chemicals is $2.00. The cost of one drum is $1.60.
Required:
1. Calculate the ending inventory of chemicals in gallons for December of the prior year, and for January and February. What is the beginning inventory of chemicals for January? Round your answers to the nearest whole gallon.
2. Prepare a direct materials purchases budget for chemicals for the months of January and February. Do not include a multiplication symbol as part of your answer.
3. Calculate the ending inventory of drums for December of the prior year, and for January and February. Round your answers to the nearest whole unit.
4. Prepare a direct materials purchases budget for drums for the months of January and February. Do not include a multiplication symbol as part of your answer.
Problem -3
Patrick Inc. makes industrial solvents. Planned production in units for the first three months of the coming year is:
| January | 43,800 |
| February | 41,000 |
| March | 50,250 |
Each drum of industrial solvent takes 0.3 direct labor hours. The average wage is $18 per hour.
Required:
Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter.
Problem -4
Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours at $16 per direct labor hour. The variable overhead rate is $1.20 per direct labor hour and the fixed overhead rate is $1.60 per direct labor hour. Andrews Company expects have 675 chairs in ending inventory. There is no beginning inventory of office chairs.
Required:
- Calculate the unit product cost.
- Calculate the cost of budgeted ending inventory.
Problem -5
Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours at $16 per direct labor hour. The variable overhead rate is $1.20 per direct labor hour and the fixed overhead rate is $1.60 per direct labor hour. Andrews Company expects to produce 20,000 chairs next year and expect to have 675 chairs in ending inventory. There is no beginning inventory of office chairs.
Required:
Prepare a cost of goods sold budget for Andrews Company.
Problem -6
Kailua and Company is a legal services firm. All sales of legal services are billed to the client (there are no cash sales). Kailua expects that, on average, 20% will be paid in the month of billing, 50% will be paid in the month following billing, and 25% will be paid in the second month following billing. For the next 5 months,the following sales billings are expected:
May $84,000
June 100,800
July 77,000
August 87,000
September 90,000
Required:
Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September.
Need help with Chapter 6- CengageNOWv2 Assignment please:
Email us: support@accountingassignmentshelp.com
Chat with us