| Darley Manutactuing is praparing ts master budget for the rsi quater of the up
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| Darley Manutactuing is praparing ts master budget for the rsi quater of the upcoming year. The folwing data paain to Darley Manufacturng's operations E,Click ??? ioon to vien the data) Olcick he oon to view additional data.) More Into asales inDecember were $71 00d. Seing pice per unit is prejected to remain stable a S12 per unit throughout the budget period. Sales for the first five months of the upcoming Oata Table anuary February 8.300 9900 9600 27.000 Unt sales Plus: Desirad encing inveory9995090003 Total needed Less: Beginning iventory Febuary $118800 prior yeark $115,200 $108,000 $103.200 9.290 1000 10500 24T00 Accounts receivable, net Property plant, and equipment, ne s 120,00o Capital stock 939096 May b 5aes are S 15.300 sean and e5% credR Al eredtsales are collected in the month following the Manuracouning has a policy nat staton tha cach monts ancing invoncory of fnishod d Of each month's direct materal purchases, 20% re pad for n the month of purchase, while Raquirenant 3. Propare a drecc matanala budget. (Round your answers ?0 th? neareat whoa dollar. goods gould be 10% of the folowing merth's saes (in una"). Dariay Manufacturing Direct Materias Budgat For the Quarter Ended March 31 Retained the remainder s paid for in the morh fo lowing purchase. Three pourds of drect macenal is nooced par unt at S2.00 per pound. Ending inventory of dret materials should be 20% of e.Most of the labor at the manufacturing feclity is indirect, but there is some cirect labor January February March Quarter 8.460 9.870 9,540 27.870 inoumed. The direct labr hours per unk is 0.05. The drect sbor rate per hour is 0 per hout. Al ciract labor a pad for in the mona in whin the work ia partome The droct labor tocal cost for each of the upcoming Pree months is es follows anuary Fobruary. . $ 4442 Units to be Mutipty ty: Quantity (pounds) of DM Quantty (pounda) neodod for producaon 25,380 29610 28,820 83,610 Plux: Desired ending inventcry of DM59225724 5376 5.376 Total quantty lpounds) neodad Less: Beginning inventory of DM Quantty (pounda) to purchase Multply by: Cost per pound Total cost of DM purc ases Requirement 4. Propare a cosh payments bucgefor the cirect matonal purchas trom Requirement 3.(Round your anewers to the nearest wholo doilar.) Mor hly manuctunngoverhead costs are $5.500 for factory rent, $2.900 for other fixed manufacturing experees, and $1.10 per unt for vaiable manufactuig overhead. No 31302 35334 33,96 88986 5076 5922_5.724 5078 26228 29412 28,272 83910 S 200 S 200S 2003 200 S 52452 S58824 $58.544 S187 820 g Computer equipment for the admin srative offices will be purchssed in the upcoming quarter. In January. Darley Man facunina wil purohaequipment for $5,000 (cash), whic Fabruarys cash axponciure will b $12,200 and March's cah xpencnune wl be $16,600. h.Operating expenses ane buegated to be $1.25 per unit sold pus fxed operasng expenses of S1800 per month Allcperating expenses are paid in the month in which they are incurred. 1 Depreciation on ???? buldig ad ecupment for the general adinistrative offices Darley Manufacturing Cash Payments for Direct Materials Budget For the Quarter Ended March 31 budgeted to be 94,500 for the entire quarter, which indludes dep eciation on new Daney Manutacounng ha policy that tho onding cash bala0e in each month must bo at least $4,00o. it has a ine of cnedit with a local tank Tha company can borrow in increments of $1,000 at the beginning of each mon up to a tolal outstanding oan belance of $110.000. The nterest rate on these loans 1 % per month smple in erest (not compoundo Tha company would pay cown on the ine balance in incroments of 1,000 f has excess funds at the end of the quarter The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter The companys income tax rate is protected to be 30% of operatrg income les? nterest ?xpense. The company pays S10,000 casn at Vid end of February in eamated taess. Prepare a schedule of cash collectons for Jenvary. February and March. denuery February March Quarter S 10490 S 11,765 $11.309 S 33.584 43,000 41,952 47,05 132,021 $ 53.490 $53,T27 $58.368 $ 166,586 and for the cuarter n total 2. Prepare a production budget. (Hint: Unit sales Seles in dolars Seling 20% of oument month DM of last monh's DM price per unt. 3 Prepare a direct meteria's budget Prepare a cash payments buegat for the Cirect maeria putchases from Total cash payments Requiramen 5. Propare a cash payments bugofor direct labor. s. Prepare a cash payments bueget for direct labor 6. Propare a cash payments buegat for man facturing ovemead coas 7. Propare a cash payment bugat tor operatng expens . Prepare a combined cash budget Prin: Done Dariey Manufacturing Cash Payments for Direct Labor Budgot For the Quarter Ended March 31 Calalate the budgeed mandacuring cost per unit (assurme Ihet ficed manufacturing overhead is budgeted to be $080 per unt for the ysar). 10. Prepare a budgeled income statement for the quarter endng Warch 31 Hnt: Cost of goods sold Budgeted cost of manufacturing one unit x January February March Quarter Total cost of diract labor Entar any numbor in the od: fiolda and than clck Chock AnaworExplanation / Answer
Direct labor Budget Jan Feb Mar Total for quarter units to be produced 8460 9870 9540 27870 requirement per unit .05 .05 .05 .05 Total hour required for production 423 493.5 477 1393.5 cost per hour 9 9 9 9 Direct labor cost 3807 4442 4293 12542
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