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Questions: 1.) Prepare a Sales Budget for May 2.) Prepare a Production Budget fo

ID: 2460283 • Letter: Q

Question

Questions:

1.) Prepare a Sales Budget for May

2.) Prepare a Production Budget for May

3.) Prepare a DM Purchases Budget for May

4.) Prepare a DL cost Budget for May

5.) Prepare a Factory Overhead cost Budget for May

6.) Prepare a Cost of Goods Sold Budget for May. WIP May 1 = $4,200, WIP May 31 = $3800

7.) Prepare a Selling and Administrative Budget for May

8.) Prepare a Budget Income Statement for May

a Estimated Sales for May: Units $ Per Unit Bicycle 9,000 $30 Motorcycle 6,000 $190 b Estimated Inventories DM LB FG Units $ Per Unit Plastic 1,480 Bicycle 200 $15 Foam 520 Motorcycle 100 $90 c Desired Inventories DM FG Plastic 2,000 Bicycle 400 $15 Foam 800 Motorcycle 300 $100 d DM Used in Production Bicycle Units per FG Motorcycle Units per FG Plastic 0.9 Plastic 3.5 Foam 0.2 Foam 1.4 e. Anticipated Costs per LB Plastic $4.40 Foam $0.90 f DL Bicycle Time $ Per Hour Motorcycle Time $ Per Hour Molding 0.3 $15 Molding 0.5 $15 Assembly 0.1 $14 Assembly 0.4 $14 g Est. FOH May Indirect $125,000 Depreciation $45,000 Utilities $23,000 Insurace & Tax $11,000 h Est. Operating Expenses Sales Salaries $175,000 Advertising $120,000 Office Salaries $92,000 Dep - Office $6,000 Misc Selling Exp $5,000 Utilities - Admin $3,000 Travel - Selling $50,000 Office Supplies $2,500 Misc. Admin $1,500 i Estimated Other Income & Expense Interest Revenue $14,560 Interest Expense $3,000 j tax rate 25%

Explanation / Answer

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Sales Budget for May Product Units Price per unit ($) Total sales ($) Bicycle 9000 30 270000 Motorcycle 6000 190 1140000 Total 15000 1410000

2)

Production Budget Desired inventory units sold subtotal beginning inventory production Bicycle 400 9000 9400 -200 9200 Motorcycle 300 6000 6300 -100 6200