Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. direct material purchases and budgeted payments ca

Direct material purchases and budgeted payments Campbell Manufacturing intends to start business on January 1. Production plans for...

70.2K

Verified Solution

Question

Accounting

Direct material purchases and budgetedpayments
Campbell Manufacturing intends to start business on January 1.Production plans for the first four months of operations are asfollows:

January8,000units
February20,000units
March28,000units
April28,000units

Each unit requires two pounds of material. The firm would liketo end each month with enough raw material to cover 25 percent ofthe following month’s production needs. Raw material costs $7 perpound. Management pays for 40 percent of purchases in the month ofpurchase and receives a 10 percent discount for these payments. Theremaining purchases are paid in the following month, with nodiscount available.
a. Prepare a purchases budget for the first quarter of theyear in units, in total, and in dollars.
Note: Do not use a negative sign with youranswers.

JanuaryFebruaryMarchQuarter
Units produced
Pounds per unitx 2x 2x 2x 2
Pounds needed
EI in pounds
Total required
Less BI
Pounds to purchase
Cost per poundx $7x $7x $7x $7
Total cost of RM

b. Determine the budgeted payments for purchases of rawmaterial for each of the first three months of operations and forthe quarter in total.

Payments
JanuaryFebruaryMarchQuarter
January purchases
February purchases
March purchases
Total

PreviousSave AnswersNext

Answer & Explanation Solved by verified expert
4.1 Ratings (539 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

On October 1, 2017, Vaughn, Inc., leased a machine from Fell Leasing Company for five years....

Chemistry
1.2K views

Calculate the pH of a 0.105 mol/L solution of carbonic acid. Answer is 3.668. How do...

Chemistry
1.2K views

Determine the [OH−] of a solution that is 0.120 M in CO32−.

Biology
1.2K views

Anthropologists believe that, several million years ago, our ancestors colonized an ecological niche different from the...

Geometry
1.2K views

Find the measures of angles Xx The measure of angle x is 39 The measure...

Accounting
1.2K views

Question 2 Solve the following Logarithmic Equation 4 +6log3(2x 5) = 22

Accounting
1.2K views

please help !!! i will thumbs-up :) Each of the three independent situations below...

Accounting
1.2K views

Use the information provided below to calculate the amount earned by Joan on 19 July...

Accounting
1.2K views

Kolton uses a single raw material in its production process. The material has a standard...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] Deliberate Speed Corporation (DSC)...

Finance
1.2K views

Recently, Ohio Hospitals Inc. filed for bankruptcy. The firm was reorganized as American Hospitals Inc.,...

Accounting
1.2K views

Life, Inc., experienced the following events in 2016, its first year of operation: 1. Performed...