Estimated Operating Figures Price $40.00 $25.00 $10.00 $24.80 PerAmount Per Unit

Question

Estimated Operating Figures Price $40.00 $25.00 $10.00 $24.80 PerAmount Per Unit unit lb hour0.6 hrs./unit unit 20X2 Sales Forecast (000) Jan. 94 Feb88 March 92 April 96 90 83 July80 August 75 Sept. 74 Oct. 75 Nov.75 Dec. 80 Year 1,000 Selling Price Direct Material Direct Labor Standard unit cost 0.5 lbs./unit Ma Annual Budgeted Overhead une Variable Mfg. OH $3,300 Estimated Activity Variable Mfg OH Rate S5.5 Fixed Mfg. OH Direct Labor Hours per Direct Labor Hour 600 $3,000 Planned Ending Inventories Finished Goods 50% of next month's unit sales Work-In-Process Raw Materials 20% 50% of this month's Budgeted Mfg Cost of material used this month Marketing and General and Administrative Expense Budgets Sales Commissions Mkt: Salaries and Expenses S15 Gen: Salaries and Expenses 1% Gen: Office Equip. Dep. S10 of sales increase in each month from Dec. 20X1 increase in each month from Dec. 201 per month 10% Estimated Cash, Financing, and Other Expense Information Cash Collections Sales Interest Income Rate 50% Month of Sale 50% Month following Sale 10% of L-Term Investments Cash Payments 100% Month following purchase 100% Month of expense 100% Month following sale Material Purchases Labor and Salaries Sales Commissions Other Current Liab. S150 paid in each month, February and March Building Purchase $2,000 financed by long-term debt Equipment Purchase $4,000 cash paid in January L-Term Investment $1,000 cash paid in January Dividends Interest on Financing S100 Quarterly, first month of the quarter following dividend declaration 12% Income Tax Rate 35% Minimum Cash Balance $1,000

Explanation / Answer

working Calculation of Enidng Inventory Jan Feb March Next month Sales S 880 920 960 Desired Ending Inevntory (50% *s) 440 460 480 Beginning Inventory 930 440 460 Jan Feb Mar Total Calcualtion of Budgeted cost of goods Manufactured Sales 940 880 920 2740 Add: desired Inventory 440 460 480 480 Less: Beginning Inventory 930 440 460 930 Budgeted Production 450 900 940 2290 Material Purchase Budget 20X1Q4 Jan X2 Feb X2 Mar X2 Total Budgeted Production 450 900 940 2290 Pounds per unit 0.5 0.5 0.5 0.5 Budgeted Material usage B 225 450 470 1145 Raw Material ending Inventory I=(50*B) 98 112.5 225.0 235.0 235 Total poundes needed T=B+I 337.5 675 705 1380 Less: Raw Material beginning Inventory R 98.0 112.5 225.0 98.0 Pounds to be purchased T-R 239.5 562.5 480.0 1282.0 Cost per pound 25.0 25.0 25.0 25.0 Budgeted Raw Material 5987.5 14062.5 12000.0 32050.0 If any doubt please comment

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.