Question Details

Determine the quantity of framing, glass, and backing that is to be purchased during August



1) Picture Pretty manufactures picture frames. Sales for August are expected to be 10,000 units of various sizes. Historically, the average frame requires four feet of framing, one square foot of glass, and two square feet of backing. Beginning inventory includes 1,500 feet of framing, 500 square feet of glass, and 500 square feet of backing. Current prices are $0.30 per foot of framing, $6.00 per square foot of glass, and $2.25 per square foot of backing. Ending inventory should be 150% of beginning inventory. Purchases are paid for in the month acquired. 

Required: 

a.	Determine the quantity of framing, glass, and backing that is to be purchased during August.
b.	Determine the total costs of direct materials for August purchases.   
2) Russell Company has the following projected account balances for June 30, 20X9: 

	Accounts payable	$40,000	Sales	$800,000
	Accounts receivable	100,000	Capital stock	400,000
	Depreciation, factory	24,000	Retained earnings	?
	Inventories (5/31 & 6/30)	180,000	Cash	56,000
	Direct materials used	200,000	Equipment, net	240,000
	Office salaries	80,000	Buildings, net	400,000
	Insurance, factory	4,000	Utilities, factory	16,000
	Plant wages	140,000	Selling expenses	60,000
	Bonds payable	160,000	Maintenance, factory	28,000

Required:
a.	Prepare a budgeted income statement for June 20X9.
b.	Prepare a budgeted balance sheet as of June 30, 20X9. 
3) Tylon's Hardware uses a flexible budget to develop planning information for its warehouse operations. For 20X9, the company anticipated that it would have 96,000 sales units for 664 customer shipments. Average storage bin usage for various inventories was estimated to be 200 per day. The costs and cost drivers were determined to be as follows: Item Fixed Variable Cost driver Product handling $10,000 $1.25 per 100 units Storage 3.00 per storage bin Utilities 1,000 1.50 per 100 units Shipping clerks 1,000 1.00 per shipment Supplies 0.50 per shipment During the year, the warehouse processed 90,000 units for 600 customer shipments. The workers used 225 storage bins on average each day to sort, store, and process goods for shipment. The actual costs for 20X9 were: Item Actual costs Product handling $10,900 Storage 465 Utilities 2,020 Shipping clerks 1,400 Supplies 340 Question 1: Determine the 20X9 static budget variances. Question 2: Determine the 20X9 flexible budget variances




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help