Wyoming Casings makes one type of plastic shell for calculators.Wyoming expects to sell 160,000...

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Accounting

Wyoming Casings makes one type of plastic shell for calculators.Wyoming expects to sell 160,000 units of this shell for theupcoming year. The beginning inventory for this shell expected tobe 20,000 units. However, the target ending finished goodsinventory for the upcoming year is 5,000 units. Each unit (shell)requires 6 ounces of plastic. At the beginning of the upcomingyear, 60,000 ounces of plastic are expected to be in inventory.Management has set a target to have plastic ending inventory equalto three months’ production requirements. Sales and production takeplace evenly throughout the year. The selling price of one shell is$1.40 and the cost per ounce of plastic is $0.15.
Requirements:
1. Prepare Wyoming’s sales revenue budget for the upcomingyear.
2. Prepare Wyoming’s production budget for calculator shells forthe upcoming year.
3. Prepare Wyoming’s direct materials purchases budget forplastic in ounces and dollars for the upcoming year.

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Requirement 1 Wyoming Casing Sales Budget Units to be sold 160000 Price per Unit 140 Total Sales revenue 22400000 Requirement 2 Wyoming Casing Production Budget Units to be sold 160000 Add Desired Ending See Answer

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In: AccountingWyoming Casings makes one type of plastic shell for calculators.Wyoming expects to sell 160,000 units...Wyoming Casings makes one type of plastic shell for calculators.Wyoming expects to sell 160,000 units of this shell for theupcoming year. The beginning inventory for this shell expected tobe 20,000 units. However, the target ending finished goodsinventory for the upcoming year is 5,000 units. Each unit (shell)requires 6 ounces of plastic. At the beginning of the upcomingyear, 60,000 ounces of plastic are expected to be in inventory.Management has set a target to have plastic ending inventory equalto three months’ production requirements. Sales and production takeplace evenly throughout the year. The selling price of one shell is$1.40 and the cost per ounce of plastic is $0.15.Requirements:1. Prepare Wyoming’s sales revenue budget for the upcomingyear.2. Prepare Wyoming’s production budget for calculator shells forthe upcoming year.3. Prepare Wyoming’s direct materials purchases budget forplastic in ounces and dollars for the upcoming year.