Facts: 1. Sales Q1 37,000 bags and Q2 45,000 bags. Price per unit $75 2. Direct
ID: 2447757 • Letter: F
Question
Facts: 1. Sales Q1 37,000 bags and Q2 45,000 bags. Price per unit $75 2. Direct materials per Widget product: 6 lbs Part A ($1.20 per lb) & 7 lbs Part B ($1.00 per lb) 3. Desired Inventory Beginning Q1 Ending Q2 Ending Widget 6,000 11,000 13,000 DM: Part A 8,000 9,000 11,000 DM: Part B 9,000 10,000 12,000 4. Direct labor is 30 minutes per unit at $17 per hour 5. Selling and Admin Costs = 12.5% of Sales + $180,000 Fixed 6. Income taxes = 28% of Income from Operations 7. Mfg OH is 170 % of Direct labor REQUIRED: Complete the budget by hand. Typed answers will not be accepted. Sales Budget Quarter 1 Quarter 2 Six month total Expected Sales (units) Unit Selling Price Total Sales Production Budget Quarter 1 Quarter 2 Six month total Expected Sales (units) Desired Ending Finished Goods Total Units Required Beginning Finished Goods Required Production Units Direct Materials Budget Part A Quarter 1 Quarter 2 Six month total Units Produced Direct Material Pounds per Unit Total Pounds Needed Add Desired Ending Inventory Total Part A Material Needed Less Beginning Inventory Direct Material Purchases Cost per Pound Total Cost Direct Materials Part A Direct Materials Budget Part B Quarter 1 Quarter 2 Six month total Units Produced Direct Material Pounds per Unit Total Pounds Needed Add Desired Ending Inventory Total Part B Material Needed Less Beginning Inventory Direct Material Purchases Cost per Pound Total Cost Direct Materials Part B Direct Labor Budget Quarter 1 Quarter 2 Six month total Units Produced Direct Labor per unit Total Hours Required Direct Labor Cost per Hour Total Direct Labor Cost Selling and Admin Budget Quarter 1 Quarter 2 Six month total Variable Costs Fixed Costs Total COGS per Bag Units Unit cost Total Direct Materials Part A Direct Materials Part B Direct Labor MFG Overhead Budgeted Income Statement Six month total Sales Cost of Goods Sold Gross Profit Selling and Admin Income from Operations Income Tax Expense Net Income Facts: 1. Sales Q1 37,000 bags and Q2 45,000 bags. Price per unit $75 2. Direct materials per Widget product: 6 lbs Part A ($1.20 per lb) & 7 lbs Part B ($1.00 per lb) 3. Desired Inventory Beginning Q1 Ending Q2 Ending Widget 6,000 11,000 13,000 DM: Part A 8,000 9,000 11,000 DM: Part B 9,000 10,000 12,000 4. Direct labor is 30 minutes per unit at $17 per hour 5. Selling and Admin Costs = 12.5% of Sales + $180,000 Fixed 6. Income taxes = 28% of Income from Operations 7. Mfg OH is 170 % of Direct labor REQUIRED: Complete the budget by hand. Typed answers will not be accepted. Sales Budget Quarter 1 Quarter 2 Six month total Expected Sales (units) Unit Selling Price Total Sales Production Budget Quarter 1 Quarter 2 Six month total Expected Sales (units) Desired Ending Finished Goods Total Units Required Beginning Finished Goods Required Production Units Direct Materials Budget Part A Quarter 1 Quarter 2 Six month total Units Produced Direct Material Pounds per Unit Total Pounds Needed Add Desired Ending Inventory Total Part A Material Needed Less Beginning Inventory Direct Material Purchases Cost per Pound Total Cost Direct Materials Part A Direct Materials Budget Part B Quarter 1 Quarter 2 Six month total Units Produced Direct Material Pounds per Unit Total Pounds Needed Add Desired Ending Inventory Total Part B Material Needed Less Beginning Inventory Direct Material Purchases Cost per Pound Total Cost Direct Materials Part B Direct Labor Budget Quarter 1 Quarter 2 Six month total Units Produced Direct Labor per unit Total Hours Required Direct Labor Cost per Hour Total Direct Labor Cost Selling and Admin Budget Quarter 1 Quarter 2 Six month total Variable Costs Fixed Costs Total COGS per Bag Units Unit cost Total Direct Materials Part A Direct Materials Part B Direct Labor MFG Overhead Budgeted Income Statement Six month total Sales Cost of Goods Sold Gross Profit Selling and Admin Income from Operations Income Tax Expense Net IncomeExplanation / Answer
Answer:
Sales Budget Quarter 1 Quarter 2 Six month total Expected Sales (units) 37,000 45,000 82,000 Unit Selling Price $ 75.00 $ 75.00 $ 75.00 Total Sales $ 2,775,000 $ 3,375,000 $ 6,150,000 Production Budget Quarter 1 Quarter 2 Six month total Expected Sales (units) 37,000 45,000 82,000 Desired Ending Finished Goods 11,000 13,000 24,000 Total Units Required 48,000 58,000 106,000 Beginning Finished Goods (6,000) (11,000) (17,000) Required Production Units 42,000 47,000 89,000 Direct Materials Budget Part A Quarter 1 Quarter 2 Six month total Units Produced 42,000 47,000 89,000 Direct Material Pounds per Unit 6 lbs 6 lbs 6 lbs Total Pounds Needed 252,000 lbs 282,000 lbs 534,000 lbs Add Desired Ending Inventory 66,000 lbs 78,000 lbs 144,000 lbs Total Part A Material Needed 318,000 lbs 360,000 lbs 678,000 lbs Less Beginning Inventory (36,000 lbs) (66,000 lbs) (102,000 lbs) Direct Material Purchases 282,000 lbs 294,000 lbs 576,000 lbs Cost per Pound $ 1.20 $ 1.20 $ 1.20 Total Cost Direct Materials Part A $ 338,400 $ 352,800 $ 691,200 Direct Materials Budget Part B Quarter 1 Quarter 2 Six month total Units Produced 42,000 47,000 89,000 Direct Material Pounds per Unit 7 lbs 7 lbs 7 lbs Total Pounds Needed 294,000 lbs 329,000 lbs 623,000 lbs Add Desired Ending Inventory 77,000 lbs 91,000 lbs 168,000 lbs Total Part B Material Needed 371,000 lbs 420,000 lbs 791,000 lbs Less Beginning Inventory (42,000 lbs) (77,000 lbs) (119,000 lbs) Direct Material Purchases 329,000 lbs 343,000 lbs 672,000 lbs Cost per Pound $ 1.00 $ 1.00 $ 1.00 Total Cost Direct Materials Part B $ 329,000 $ 343,000 $ 672,000 Direct Labor Budget Quarter 1 Quarter 2 Six month total Units Produced 42,000 47,000 89,000 Direct Labor per unit 0.50 hours 0.50 hours 0.50 hours Total Hours Required 21,00- hours 23,500 hours 44,500 hours Direct Labor Cost per Hour $ 17.00 $ 17.00 $ 17.00 Total Direct Labor Cost $ 357,000 $ 399,500 $ 756,500 Selling and Admin Budget Quarter 1 Quarter 2 Six month total Variable Costs $ 346,875 $ 421,875 $ 768,750 Fixed Costs $ 180,000 $ 180,000 $ 360,000 Total $ 526,875 $ 601,875 $ 1,128,750 COGS per Bag Units Unit cost Total Direct Materials Part A $ 7.20 $ 7.20 $ 7.20 Direct Materials Part B $ 7.00 $ 7.00 $ 7.00 Direct Labor $ 8.50 $ 8.50 $ 8.50 MFG Overhead $ 14.45 $ 14.45 $ 14.45 Total $ $ 37.15 $ 37.15 $ 37.15 Budgeted Income Statement Six month total Sales $ 6,150,000 Cost of Goods Sold $ 3,046,300 ($ 37.15 x 82,000) Gross Profit $ 3,130,700 Selling and Admin $ 1,128,750 (12.5% of $ 6,150,000 + $ 360,000) Income from Operations $ 2,001,950 Income Tax Expense $ 560,546 Net Income $ 1,441,404Related Questions
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