The following information applies to the questions displayed below bamboo pictur
ID: 2517142 • Letter: T
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The following information applies to the questions displayed below bamboo picture trames that sell for $30 each Each freme requires 4 linear feet of bamboo, which costs $3.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $13 per hour iguana has the following inventory policies Ending finished goods inventory should be 40 percent of next month's sales Ending row materials inventory should be 30 percent of next month's production Expected unit sales frames) for the upcoming months follow 285 270 320 420 395 445 Apni May June August Variable manufacturing overheed is incurred at a rate of $0 50 per unit produced Annual fxed manufacturing overhead is estimated to be $8.400 ($700 per month) for expected production of 4.200 units for the year Seling and administrative expenses are estimated at $750 per month plus $0.50 per unit sold c sales. 50 percent is collecsed duing the month of the sale ond 50 percent s colected Iouana, Inc, had S11000 cash on hand on Apri 1 Of its sales. 80 percent is in cash Of the Of row materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month Row materials purchases for March 1 totaled $3.000.A Monthly fixed manufacturing overheed includes $170 in depreciation. During April, Iiguane plans to pay $3.200 for a piece of during the month following the sale other operating costs are paid during the month incurred cExplanation / Answer
Answer 1. Sales Budget April May June Total Sales in Units 270 320 420 1,010 Sp Per Unit 30 30 30 30 Total Sales in $ 8,100 9,600 12,600 30,300 Answer 2. Frame Production Budget April May June Total Sales In units 270 320 420 1,010 Add: Closing Inventory in units 128 168 158 158 Total Needs 398 488 578 1,168 Less: opening Inventory in uints (108) (128) (168) (108) Required Production in Units 290 360 410 1,060 Answer 3. Raw Material Purchase Budget April May June Total Required Production in Units 290 360 410 1,060 Bamboo required per Unit in Feet 4 4 4 4 Total Bamboo required for Production 1,160 1,440 1,640 4,240 Add: Closing Raw Material Inventory 432 492 498 498 Total Needs 1,592 1,932 2,138 4,738 Less: opening Inventory in feets (348) (432) (492) (348) Raw Material Purchased in feets 1,244 1,500 1,646 4,390 Cost of raw Material per feet 3.00 3.00 3.00 3.00 Cost of raw Material Purchased 3,732 4,500 4,938 13,170 Answer 4. Budgeted Direct Labor Costs April May June Total Required Production in Units 290 360 410 1,060 Lab. Hour required per unit 0.50 0.50 0.50 0.50 Total Labor Hours Required 145 180 205 530 Lab. Rate per Hour 13 13 13 13 Budgeted Direct Labor Costs 1,885 2,340 2,665 6,890 Answer 5. Budgeted Manufacturing Overhead April May June Total Required Production in Units 290 360 410 1,060 Variable MOH per Unit 0.50 0.50 0.50 0.50 Total Variable MOH 145 180 205 530 Fixed MOH Depreciation 170 170 170 510 Other MOH 530 530 530 1,590 Total Fixed MOH 700 700 700 2,100 Total MOH 845 880 905 2,630 Answer 6. Budgeted Manufacturing Costs per Unit: Direct Materials - 4 Ft. X $3 12.00 Direct Labor - 0.50 Hrs X $13 6.50 Variable MOH 0.50 Fixed MOH - $8,400 / 4,200 Units 2.00 Total Budgted Manufacturing Cost per Unit 21.00 Budgeted Cost of Goods Sold April May June Total No. Of Units Sold 270 320 420 1,010 Total Budgted Manufacturing Cost per Unit 21 21 21 21 Budgeted Cost of Goods Sold 5,670 6,720 8,820 21,210 Answer 7. Total Budgetd Selling & Admn. Expenses April May June Total No. Of Units Sold 270 320 420 1,010 Variable Selling & Admn. Exp. Per Unit 0.50 0.50 0.50 0.50 Total Variable selling & Admn. Exp. 135 160 210 505 Fixed selling & Admn. Exp. 750 750 750 2,250 Total selling & Admn. Exp. 885 910 960 2,755
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