Dallas Company is preparing a master budget for the 1 st quarter of 2016. Given the following information, you are to prepare using formulas the following: (A) Production Budget, (B) Direct Materials Budget, and (C) Cash Payments for Direct Materials Purchases Budget for the 1 st quarter of 2016. For the budgets, you need to make them adaptable so that

Sep 8, 2023

Dallas Company is preparing a master budget for the 1st quarter of 2016. Given the following information, you are to prepare using formulas the following: 

(A) Production Budget, (B) Direct Materials Budget, and (C) Cash Payments for Direct Materials Purchases Budget for the 1st quarter of 2016. 

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Dallas Company is preparing a master budget for the 1 st quarter of 2016. Given the following information, you are to prepare using formulas the following: (A) Production Budget, (B) Direct Materials Budget, and (C) Cash Payments for Direct Materials Purchases Budget for the 1 st quarter of 2016. For the budgets, you need to make them adaptable so that
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For the budgets, you need to make them adaptable so that if I change the sales budget and/or materials cost per unit, the budgets will automatically update for these changes.

Facts:

Projected

Sales: Jan 1,100 units at $10 per unit

Feb 1,150 units at $10 per unit

March 1,200 units at $10 per unit

April 1,150 units at $10 per unit

May 1,100 units at $10 per unit

Finished Goods Inventory:

Policy requires ending inventory to be 10% of next month’s projected sales. Beginning Inventory as of Q1 was 100 units.

Direct Materials Inventory:

Each unit produced requires 3 pounds of Direct materials. Direct Materials costs $3 per pound. Policy requires ending Direct materials to be 30% of next month’s production needs. They currently have 1,000 pounds of Direct materials on hand as of the Beginning of Q1.

Materials Purchases:

All Direct Materials all purchased on account, with terms of n/15. Because inventory is purchased evenly throughout the month, ½ of the purchases in a month are paid in the month of purchase and the other ½ are paid in the following month. There are currently $600 owed as of the beginning of the Q1 (all of that will be paid in Jan.).

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