Chapter 22 HW Please answer . This is the b section from a and c. I send it but

Question

Chapter 22 HW

Please answer . This is the b section from a and c. I send it but no one has send it back. Thank you.

COMPPRO.05-01.PART.B

Comprehensive Problem 5
Part B:

Note: This section is a continuation from Part A of the comprehensive problem. Be sure you have completed Part A before attempting Part B. You may have to refer back to data presented in Part A and use answers from Part A when completing this section.

Genuine Spice Inc. began operations on January 1 of the current year. The company produces 8-ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows:

Part B—August Budgets

During July of the current year, the management of Genuine Spice Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases at $100 per case for August. Inventory planning information is provided as follows:

Finished Goods Inventory:

Materials Inventory:

There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there was no change in the cost per unit or estimated units per case operating data from January.

Required:

5. Prepare the August production budget. Enter all amounts as positive numbers.

6. Prepare the August direct materials purchases budget. Enter the unit price to the nearest cent. Enter all amounts as positive numbers.

7. Prepare the August direct labor cost budget. For hours required, round to nearest whole hour. For hourly rate, enter to the nearest cent, if required.

8. Prepare the August factory overhead cost budget. If an amount box does not require an entry, leave it blank.

9. Prepare the August budgeted income statement, including selling expenses. Enter all amounts as positive numbers.

DIRECT MATERIALS Cost
Behavior Units
per Case Cost
per Unit Direct Materials
Cost per Case Cream base Variable 100 ozs. $0.02 $2.00 Natural oils Variable 30 ozs. 0.30 9.00 Bottle (8-oz.) Variable 12 bottles 0.50 6.00 $17.00 DIRECT LABOR Department Cost
Behavior Time
per Case Labor Rate
per Hour Direct Labor
Cost per Case Mixing Variable 20 min. $18.00 $6.00 Filling Variable 5 14.40 1.20 25 min. $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $600 Facility lease Fixed 14,000 Equipment depreciation Fixed 4,300 Supplies Fixed 660 $19,560

Explanation / Answer

5 Production Budget Cases Estimated Sales in cases 1500 add: Closing inventory needed 175 Total Cases needed 1675 less:Beginning inventory 300 Production to be done 1375 6 Direct Material Budget Production to be done 1375 Cream Natural Oils Bottles Total Unit per case Total *1375 Cost *unit cost Unit per case Total *1375 Cost *unit cost Unit per case Total *1375 Cost *unit cost Total Q Cost Material Needed 100 137500 2750 300 412500 123750 12 16500 8250 566500 134750 add: Closing 1000 20 360 108 240 120 1600 248 Total Material Needed 138500 2770 412860 123858 16740 8370 568100 134998 Less: Beginning 250 5 290 87 600 300 1140 392 Purchases 138250 2765 412570 123771 16140 8070 566960 134606 7 Direct Labor Budget Hour Required for production of Mixing Filling Total 20 Min=1/3 Hour 458 5 Min=1/12 Hour 115 25 min 573 Per Hour Rate 18 14.4 Total Hour 18*458 8250 14.4*115 1650 9900 8 Fixed Ovrhead Budget 19560 as fixed Varible overhead Nill 9 Budgeted Income Statement Budgeted Sale (1500*100) 150000 Less: Direct Material (1500*17) 25500 Direct Labor (1500*7.2) 10800 Sales Commission (1500*20) 30000 Total Variable Cost 66300 Gross Margin 150000-66300 83700 Less: Fixed Cost Utiliites 600 Facility 14000 Depreciation 4300 Supplies 660 Total Fixed Cost 19560 Net Income 83700-19560 64140

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