Genuine Spice Inc. Production Budget For the Month Ended August 31, 2014 Cases E

ID: 2505032 • Letter: G

Question

Genuine Spice Inc. Production Budget
For the Month Ended August 31, 2014 Cases Expected cases to be sold Plus Desired ending inventory Total Less Estimated beginning inventory Total units to be produced Question 6 Genuine Spice Inc. Direct Materials Purchases Budget
For the Month Ended August 31, 2014 Cream Base (ozs.) Natural Oils (ozs.) Bottles (bottles) Total Units required for production Plus: Desired ending inventory Less: Estimated beginning inventory Direct materials to be purchased Unit price Total direct materials to be purchased Question 7 Genuine Spice Inc. Direct Labor Budget
For the Month Ended August 31, 2014 Hours required for production: Mixing Filling Total Hand and body lotion Hourly rate Total direct labor cost Question 8 Genuine Spice Inc. Factory Overhead Budget
For the Month Ended August 31, 2014 Factory overhead: Fixed Variable Total Utilities Facility Lease Equipment Depreciation Supplies Total Question 9 Genuine Spice Inc. Budgeted Income Statement
For the Month Ended August 31, 2014 Sales Finished goods inventory, August 1 Direct materials inventory, August 1 Direct materials purchases [from part (6)] Less direct materials inventory, August 31 Cost of direct materials for production Direct labor [from part (7)] Factory overhead [from part (8)] Less finished goods inventory, August 31 Cost of goods sold Gross profit Selling expenses Income before income tax Genuine Spice Inc. Production Budget
For the Month Ended August 31, 2014 Cases Expected cases to be sold Plus Desired ending inventory Total Less Estimated beginning inventory Total units to be produced Question 6 Genuine Spice Inc. Direct Materials Purchases Budget
For the Month Ended August 31, 2014 Cream Base (ozs.) Natural Oils (ozs.) Bottles (bottles) Total Units required for production Plus: Desired ending inventory Less: Estimated beginning inventory Direct materials to be purchased Unit price Total direct materials to be purchased Question 7 Genuine Spice Inc. Direct Labor Budget
For the Month Ended August 31, 2014 Hours required for production: Mixing Filling Total Hand and body lotion Hourly rate Total direct labor cost Question 8 Genuine Spice Inc. Factory Overhead Budget
For the Month Ended August 31, 2014 Factory overhead: Fixed Variable Total Utilities Facility Lease Equipment Depreciation Supplies Total Question 9 Genuine Spice Inc. Budgeted Income Statement
For the Month Ended August 31, 2014 Sales Finished goods inventory, August 1 Direct materials inventory, August 1 Direct materials purchases [from part (6)] Less direct materials inventory, August 31 Cost of direct materials for production Direct labor [from part (7)] Factory overhead [from part (8)] Less finished goods inventory, August 31 Cost of goods sold Gross profit Selling expenses Income before income tax

Explanation / Answer

Production Budget

For the Month Ended August 31, 2014

Cases

Expected cases to be sold................................................................................... 1,400

Plus desired ending inventory........................................................................... 100

Total.................................................................................................................... 1,500

Less estimated beginning inventory.................................................................. 200

Total units to be produced................................................................................ 1,300

Direct Materials Purchases Budget

For the Month Ended August 31, 2014

Natural

Cream Base

Oils

Bottles

Total

(ozs.)

(bottles)

Units required for production.........................

93,6001

31,2002

15,6003

Plus desired ending inventory.........................

600

300

400

Less estimated beginning inventory................

(400)

(240)

(500)

Direct materials to be purchased....................

93,800

31,260

15,500

Unit price..........................................................