EC 5 Q2 Hurtt’s Java Seeds is an independent roaster of specialty coffee beans. The company budgets 2 months ahead, so that in early January,

EC 5 Q2 Hurtt’s Java Seeds is an independent roaster of specialty coffee beans. The company budgets 2 months ahead, so that in early January, it is time to plan for March. During March, the company plans to sell 20,000 pounds of beans. At the end of February, the company expects to have 3,000 pounds of raw green coffee beans (costing \$8,000) and 800 pounds of roasted beans (costing \$4,200) in inventory. Hurtt’s would like to have 1,400 pounds of green coffee beans and 500 pounds of roasted beans in inventory at the end of March. Hurtt’s purchases green coffee beans from the grower at \$3 per pound and sells the roasted beans for \$16 per pound. Hurtt’s roasters hold 25 pounds of green coffee beans. It takes 18 minutes to roast the beans to perfection. Because the roaster must be monitored by an employee at all times, each batch requires 0.33 direct labor hours. During the roasting process, the green beans lose 25% of their weight, so that 1.25 pounds of green (raw) beans must be used to produce 1 pound of roasted beans. The standard direct labor rate is \$15 per direct labor hour. Variable overhead is applied at the rate of \$85 per direct labor hour, and fixed overhead is budgeted at \$13,099 per month, including \$1,550 in equipment depreciation. Everything in red needs to be fixed. : Your answer is partially correct.
Prepare Hurtt’s coffee bean purchases budget for March. (Round answers to 2 decimal places, e.g. 15.25.)
Budgeted production
20000
Green beans per roasted pound
1.25
Green beans needed for production (pounds)
25000
Budgeted ending inventory of green beans
1400
Total green beans needed (pounds)
26400
Beginning green bean inventory (pounds)
3000 i
Budgeted green bean purchases (pounds)
23400
Standard price per pound
Budgeted purchases
70200
eTextbook and Media
%24

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