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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 386 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

xxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxx xxxxxxxxxx xxx xxxxxxx the following xxxxxxxxxx xxxxxx xxx xxx xxxxx 4 months of 2013.
xxxxx Units
Management wants to have x xxx xxxxxxxxx inventory xx the xxx xx xxx month xxxxx to 30% of next month's xxxxxxxxxx requirements.
xxxxxxxx the direct xxxxxxxxx purchases xxxxxx by month xxx the first quarter.
Month JanuaryFebruary xxxxx xxxxx
Budgeted Units xxxxxxxxxxxxxxxxxxx
x DM xxxxxxxx xxx unit(pds)3x x3
xxxxxx xxxxxxxx xxxxxxxx 300002400015000xxxxx
for production
Add: Budgeted ending DMxxxx xxxx3600
xxxxx Budgeted beginning xxxxxx 7200 xxxx xxxx
xxxxxxxx DM purchase xxxxxxxxxxxxx xxxxxxxxxx
xxxx per xxxxx 2x 2x
xxxxxxxx DM purchase ($) xxxxx42600 28200

Sheet2

xxxxxx


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

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xxxx xxxxxx Industries has adopted xxx xxxxxxxxx production budget for the xxxxx 4 months xx 2009. xxxxx Units Month Units xxxxxxx 10,000 March 5,000 xxxxxxxx xxxxx April xxxxx xxxx unit xxxxxxxx 3 pounds xx xxx materials costing $2 xxx xxxxxx xx xxxxxxxx 31, xxxxx the xxxxxx raw materials xxxxxxxxx xxx 9,000 xxxxxxx xxxxxxxxxx xxxxx xx xxxx a xxx materials xxxxxxxxx at xxx xxx of the month equal xx xxx xx xxxx month's xxxxxxxxxx xxxxxxxxxxxxx Prepare a xxxxxx materials purchases xxxxxx by month xxx the xxxxx xxxxxxxx xxxxxx INDUSTRIES Direct xxxxxxxxx xxxxxxxxx xxxxxx For xxx xxxxxxx xxxxxx xxxxx 31, xxxx January February March × × × xxxxx pounds needed xxx production xxxx xxxxx materials xxxxxxxx xxxxx xxxxxx materials xxxxxxxxx × x × x × x xxxxx cost of xxxxxx materials xxxxxxxxx $ x $

MORENO INDUSTRIES

Direct xxxxxxxxx xxxxxxxxx Budget

For xxx Quarter xxxxxx March 31, xxxxx

x

xxxxxxxxxxx

January

February

xxxxx

xxxxx to xx xxxxxxxxx

Direct xxxxxxxxx per xxxxx

xxxxx xxxxxx xxxxxx for production

xxxx xxxxxxx \r 1 Desired xxxxxx direct xxxxxxxxxx

xx  xxxxxxxxxx

xxxxx materials xxxxxxxxx

xxxxx Beginning direct materials

  (pounds)

Direct xxxxxxxxx xxxxxxxxxx

xxxx per pound

Total xxxx xx direct materials

x  purchases

 10,000

X  x

 30,000

7,200

 xxxxxxx

9,000

 xxxxxxx

x  xx

xxxxxxx

  xxxxxx

x   3

 xxxxxxx

xxxxx

 28,500

xxxxx

 21,300

x  $2

xxxxxxx

5,000

X  x

15,000

xxxxx

xxxxxxx

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