Brown Inc'S Production Budget for Product X for the Year Ended

question 129

Essay

Brown Inc.'s production budget for Product X for the year ended December 31 is as follows: $\begin{array}{lr}&\underline{\text { Product X }}\\\text { Sales } & 640,000 \text { units } \\\text { Plus desired ending inventory } & \underline{85,000}\\\text { Total } & 725,000 \\\text { Less estimated beginning inventory, Jan. } 1 &90,000 \\\text { Total production }&\underline{\mathbf{6 3 5}, 000}\end{array}$ ?
In Brown's production operations, Materials A, B, and C are required to make Product X.The quantities of direct materials expected to be used for each unit of product are as follows:
Product X
Material A .50 pound per unit
Material B 1.00 pound per unit
Material C 1.20 pound per unit
The prices of direct materials are as follows:
Material A $0.60 per pound
Material B $1.70 per pound
Material C $1.50 per pound
Prepare a direct materials purchases budget for Product X.

Prepare adjusting journal entries for recording depreciation and asset disposals.

Understand the impact of changes in depreciation estimates and how to account for them.

Recognize and explain the accounting procedures for asset disposals including the calculation of gain or loss on disposals.

Describe and apply the accounting for intangible assets including amortization processes.

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