- 2 5 Dor Stock Res M Exercise 9 3 Direct Materials Purchases Budget Lo2 Fortin Limited Produces And Sells A Single Prod 1 (35.04 KiB) Viewed 12 times
- 2 5 Dor Stock Res M Exercise 9 3 Direct Materials Purchases Budget Lo2 Fortin Limited Produces And Sells A Single Prod 2 (33.12 KiB) Viewed 12 times
2 5 DOR stock Res M Exercise 9-3 Direct Materials Purchases Budget [LO2] Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limited has developed the following estimates for unit sales in the upcoming year. Budgeted unit sales First Quarter 25,900 Second Quarter 21,400 Requred production of lignes Number of bubs per light Third Quarter 20,900 Each light requires two separate LED bulbs, each of which costs $2. To ensure enough LED bulbs are on hand to support short term production if a problem arises with the sole supplier, Fortin Limited maintains an ending inventory of 10% of the following quarter production needs. A total of 5.200 LED bulbs will be on hand to start the first quarter of the upcoming fiscal year, Management expects sales in the fourth quarter of the upcoming year to be the same as the first quarter of the following year Required: Prepare a direct materials purchases budget for LED bulbs, by quarter and in total for the upcoming fiscal year, At the bottom of your budget, show the dollar amount of purchases for each quarter and for the year in total Hint: Fortin Limited maintains an ending inventory of both raw materials and finished goods of 10% of the following quarter's production needs. Before preparing a direct materials budget the production budget must be prepared. FORTIN LIMITED Direct Materials Budget-Year 2 First Fourth Quarter 21,200 Becond Quarter Pre Third Fourth 2 ENE m Year Nest 2
Ch 9 Ex 35 marks 2 5 points eBook Pont References sales in the fourth quarter of the upcoming year to be the same as the test quarter of the sonowing year. Required: Prepare a direct materials purchases budget for LED bulbs, by quarter and in total, for the upcoming fiscal yeat At the bottom of your budget, show the dollar amount of purchases for each quarter and for the year in total. Hint. Fortin Limited maintains an ending Inventory of both raw materials and finished goods of 10% of the following quarter's production needs. Before preparing a direct materials budget, the production budget must be prepared. Requind production of lights Number of bulbs per light Total production needs-bulbs Total needs-bulbs Required purchases-bubs Total cost of purchases FORTIN LIMITED Direct Materials Budget-Year 2 First Second Seved Quarter Third Fourth Year Heip Save &