i need some help with problem 3-part : manufacturing overhead budget for 1st qtr

Question

i need some help with problem 3-part : manufacturing overhead budget for 1st qtr 2019. Predetermined overhead rate, along with overhead allocation base. 4. cost of goods sold budget for 2019

tve 3 P22-38A Preparing an operating budget-sales, production, direct materials, direct labor, overhead, COGS, and S&A; expense budgets IR $10 2.540 The Langley Batting Company manufactures wood baseball bats. Langley's two pri mary products are a youth bat, designed for children and young teens, and an adult bat, designed for high school and college-aged players. Langley sells the bats to sporting goods stores, and all sales are on account. The youth bat sells for $40; the adult bat sells for $65. Langley's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Lang?ey's balance sheet for December 31, 2018, follows: LANGLEY BATTING COMPANY Balance Sheet December 31, 2018 Assets Current Assets Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets s30,000 16,700 6,000 21,300 74,000 Property, Plant, and Equipment: 130,000 Equipment Less: Accumulated Depreciation (50,000) 80,000 Total Assets $154,000 Liabilities Current Liabilities: s15,200 Accounts Payable Stockholders' Equity Common Stock, no par Retained Earnings $90,000 48,800 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 138,800 $ 154,000 Other data for Langley Batting Company for the first quarter of 2019 a. Budgeted sales are 1,200 youth bats and 2,600 adult bats b. Finished Goods Inventory on December 31, 2018, consists of 300 youth bats at $14 each and 950 adult bats at S18 each. d 300 adult bats: c. Desired ending Finished Goods Inventory is 350 youth bats ar FIFO inventory costing method is used Direct materials requirements are 48 ounces of wood per youth bata of wood per adult bat. The cost of wood is $0.25 per ounce and 56 ounces

Explanation / Answer

Finished goods production required Youth Bats Adults Bats Opening Inventory A                   300                        950 Budgeted sales B                1,200                    2,600 Desired Finished inventory C                   350                        300 Required production D= B+C-D                1,250                    1,950 Raw material purchase requirements Woods (Ounce) Opening Inventory A 24,000 Budgeted Usage of Woods for estimated production (1250 Youth Bat *48 Ounce + 1950 Adult Bat *56 Ounce ) B 1,69,200 Desired Finished inventory C 24,000 Required production D= B+C-D 1,69,200 Cost of wood: 0.25/Ounce Direct Material Budget ($) Opening inventory 6,000 (24000 ounce* $ 0.25) Purchase 42,300 ( 169200*$ .25) Used 42,300 ( 169200*$ .25) Closing Inventory 6,000 (24000 ounce* $ 0.25) Direct Labour Budget Youth Bats Adults Bats Production : 1,250 1,950 Labour hour required (0.7/Bat) 875 1,365 Labour cost ($ 18/hours) 15,750 24,570 Total 40,320 Manufacturing overhaed Budget Youth Bats Adults Bats Variable Manufacturing overhaed (0.3/Bat) 375 585 Fixed manufacturing Overhaed (1300+20140) 21440 Allocation of Fixed overhaed based on direct labour hours Fixed overhaed ($) 21440 Labour hours (875+1365) Hours 2240 Rate (21440/2240) ($) 9.57 Cost of goods sold budget for quarter 1 -2019 Youth Bats Adults Bats Total Opening inventory of Bat 4,200 17,100 21,300 Production Cost: Material cost 15,000 27,300 42,300 Labour Cost 15,750 24,570 40,320 Variable Overhaed 375 585 960 Fixed Overhaed 8,375 13,065 21,440 Total production Cost 39,500 65,520 1,05,020 Total cost of units produced 43,700 82,620 1,26,320 Units produced 1,250 1,950 3,200 Rate 35 42 Units Sold 1,200 2,600 Cost of goods sold ( Rate*Units sold) 41,952 1,10,160

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

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