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Question
Submitted by vonani on Mon, 2012-05-07 13:13
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Moreno Industries has adopted the following production budget for the first 4 months of 2013. Month Units Month Units January 10,000 ...

Moreno Industries has adopted the following production budget for the first 4 months of 2013.

Month Units Month Units January 10,000 March 5,000 February 8,000 April 4,000

Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2012, the ending raw materials inventory was 9,000 pounds. Management wants to have a raw materials inventory at the end of the month equal to 30% of next month's production requirements.

Complete the direct materials purchases budget by month for the first quarter.

Answer
Submitted by shahimermaid on Mon, 2012-05-07 16:44
teacher rated 378 times
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the answer is in attached file, change the figures and it will be calculated for any value

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xxxxxx

xxxxxxxxxxxxxxxxxxxxx
Moreno xxxxxxxxxx xxx adopted the following production xxxxxx xxx the first 4 xxxxxx xx xxxxx
Month Units
Management wants to xxxx a xxx materials inventory xx xxx xxx of xxx xxxxx equal to xxx xx next month's production xxxxxxxxxxxxx
Complete the direct xxxxxxxxx xxxxxxxxx xxxxxx xx xxxxx xxx the xxxxx xxxxxxxx
xxxxx xxxxxxxxxxxxxxx xxxxx xxxxx
xxxxxxxx xxxxx xxxxxxxxxxx xxxx xxxx
x DM required per xxxxxxxxx 33x3
xxxxxx xxxxxxxx required 30000 24000 xxxxx 12000
for xxxxxxxxxx
Add: xxxxxxxx xxxxxx DMxxxx 45003600
less: xxxxxxxx beginning xx9000 xxxxxxxx xxxx
xxxxxxxx xx xxxxxxxx (pounds) xxxxx 21300 xxxxx
cost xxx pound x x 2 x
Budgeted xx xxxxxxxx ($) xxxxx42600xxxxx

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Answer
Submitted by Asma on Mon, 2012-05-07 14:19
teacher rated 315 times
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Direct material purchase budget -Moreno

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xxxxxx xxxx attached file.

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xxxx Moreno Industries xxx xxxxxxx the following xxxxxxxxxx xxxxxx for xxx xxxxx x xxxxxx of 2009. Month Units Month xxxxx January 10,000 March 5,000 xxxxxxxx 8,000 April xxxxx xxxx unit requires 3 pounds of raw materials xxxxxxx $2 xxx pound. xx December xxx 2008, xxx ending raw materials inventory xxx 9,000 xxxxxxx xxxxxxxxxx wants xx have a xxx materials inventory at xxx end of xxx xxxxx xxxxx xx 30% of xxxx xxxxxxx xxxxxxxxxx requirements. xxxxxxx x xxxxxx materials xxxxxxxxx budget xx month xxx the xxxxx quarter. xxxxxx xxxxxxxxxx Direct Materials Purchases Budget xxx the xxxxxxx xxxxxx March 31, 2009 January xxxxxxxx March × × × xxxxx pounds needed xxx xxxxxxxxxx Add: Total xxxxxxxxx required xxxxx xxxxxx xxxxxxxxx purchases × $ × $ × $ Total xxxx of direct xxxxxxxxx purchases x x xx

xxxxxx INDUSTRIES

Direct xxxxxxxxx xxxxxxxxx Budget

xxx xxx xxxxxxx Ending xxxxx xxx 2009

xxxxxxxx

xxxxxxx

xxxxxxxx

March

Units xx be xxxxxxxxx

xxxxxx xxxxxxxxx xxx xxxxx

Total pounds needed xxx xxxxxxxxxxx

Add: ADVANCE xx x xxxxxxx ending xxxxxx xxxxxxxxxx

  (pounds)*

xxxxx xxxxxxxxx required

Less: xxxxxxxxx direct xxxxxxxxxx

xx  xxxxxxxxx

Direct materials xxxxxxxxxx

Cost xxx pound

xxxxxx cost xx direct xxxxxxxxxx

  xxxxxxxxx

 10,000

x  3

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