1 - Consider the following budget information: materials to be used totals $64,8
ID: 2465450 • Letter: 1
Question
1 - Consider the following budget information: materials to be used totals $64,863; direct labor totals $199,729; factory overhead totals $403,151; work in process inventory January 1, 2012, was expected to be $185,147; and work in progress inventory on December 31, 2012, is expected to be $197,929. What is the budgeted cost of goods manufactured?
2 - As of January 1 of the current year, the Grackle Company had accounts receivables of $50,000. The sales for January, February, and March were as follows: $120,000, $140,000 and $150,000. 20% of each month's sales are for cash. Of the remaining 80% (the credit sales), 60% are collected in the month of sale, with remaining 40% collected in the following month. What is the total cash collected (both from accounts receivable and for cash sales) in the month of March?
3 - The standard costs and actual costs for direct materials for the manufacture of 2,560 actual units of product are as follows:
4 - Determine the amount of direct materials price variance.The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows:
Standard Costs Direct materials (per completed unit) 1.04 pounds @$8.60Actual Costs Direct materials 2,560 pounds @ $8.20
Explanation / Answer
Answer 1. Budgeted Cost of Goods Manufactured Direct Materials 64,863 Direct Labor 199,729 Factory Overheads 403,151 Total Manufacturing Overhead 667,743 Add: Beginning WIP 185,147 Less: Closing WIP (197,929) Budgeted Cost of Goods Manufactured 654,961 Answer 2. Schedule of Expected Cash Collections from Sales Jan Feb March Total Sales 120,000 140,000 150,000 410,000 Cash Sales (20% of Sales) 24,000 28,000 30,000 82,000 Credit Sales (80% of Sales) 96,000 112,000 120,000 328,000 Cash Collection From Sales Cash Sales 24,000 28,000 30,000 82,000 Collection from Accounts Receivables AR - Dec Sale 50,000 50,000 Jan Sales collections 57,600 38,400 96,000 Feb Sales collections 67,200 44,800 112,000 Mar Sales 72,000 72,000 Total cash Collections 131,600 133,600 146,800 412,000 Answer 3. Material Price Variance = (SR - AR) X AQ Material Price Variance = ($8.60 - $8.20) x 2560 Pounds Material Price Variance = $1024 (F) Answer 4. Direct labor Rate Variance = (SR - AR) X AH Direct labor Rate Variance = ($11.80 - $11.40) X 7400 Hrs Direct labor Rate Variance = $2960 (F)
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