6:03 Snowcome Company estimates that quarterly unit sales will increase by 15% a

Question

6:03 Snowcome Company estimates that quarterly unit sales will increase by 15% assuming a unit price of $30. Prepare a Sales Budget Quarterly for the upcoming year, 2018. Last Years quanerly sales figures are Sales 2017 01-75076 02- 70041 Q3- 65081 04.80037 2. Snowcome would like to have an ending inventory of finished goods equal to 10% of expected sales for the following period. Assuming the ending inventory of finished goods on December 31, 20178500 units. Projected sales for the 1st quarter of 2019 are 86,250. Prepare a Production Badget for 2018 .Four units of raw materials are required to prodace one unit of finished peoduct. Snowcome has established a policy that 20% of the raw maknals needed for the next quarters production wil be on hand at the end of each quarter. Assuming a beginning inventory of 76.500 units of ?.uenals and raw materials cost 25 per unit units to be produced for the Ist quarter of 2019 ane 86,450 Prepare a direct materials budget 4. It takes 1.6 labor hours to produce I unit Direct Labor cost is 83 per hour Prepare a direct labor budget. Works generally ?0rk 480 hours qmter. no overtime is allowed. , Snowcome estimates following Manufacturing Oll cost Var. Indirect materials oost per finished unit 150 Var Indirect labor cost per finished unit 1.23 Var Utilities cost per finished unit 08 Fixed cost for indirect labor per quaner 75,076 Fixed cost for deprec. per quarter 18.041 Fixed cost for other ilems per quarter 7,581 Prepare a manufacturing overhcad budget. 6. Snowcome will have the following selling and general administrative expenses for 2018 Sales commision salaries of 10% of sales Advertising salaries 340,076 Deprec, and Office equipt 24,041 Office manager salary 50,081 Prepare a sellling expense budget and general

Explanation / Answer

Snowcome Company Selling Expense Budget for year 2018 Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total Sales Value $2,590,110 $2,416,410 $2,245,290 $2,761,290 $10,013,100 Sales Comission @10% $259,011 $241,641 $224,529 $276,129 $1,001,310 Advertising Salaries $340,076 $340,076 $340,076 $340,076 $1,360,304 Total Selling Expense $599,087 $581,717 $564,605 $616,205 $2,361,614 Snowcome Company Selling Expense Budget for year 2018 Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total Depr and Off Equipment $24,041 $24,041 $24,041 $24,041 $96,164 Office Manager Salary $50,081 $50,081 $50,081 $50,081 $200,324 Total Selling Expense $74,122 $74,122 $74,122 $74,122 $296,488 Working Note: Computation of Sale value Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total Sales Quantity in 2017 75076 70041 65081 80037 290235 % Increase 15% 15% 15% 15% 15% Increase Sales Quantity               11,261               10,506                 9,762               12,006                 43,535 Total Sales Quanity for 2018 86337 80547 74843 92043 333770 Selling Price/Unit 30 30 30 30 30 Sales Value $2,590,110 $2,416,410 $2,245,290 $2,761,290 $10,013,100

Related Questions

Navigate

• Browse (All)
• Browse 6
• Subjects

---

---

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