sandoval Forecasted sales (tables) 2,500 2,700 2,900 2,200 of the time needed to
ID: 2554250 • Letter: S
Question
sandoval Forecasted sales (tables) 2,500 2,700 2,900 2,200 of the time needed to create each table, Sandoval maintains an ending Finished Goods budgeted sales. Sandoval has been fellowing this inventery polcy for several years. The company ended 2014 with soo eft the following quarters 500 tables on American cherry wood al Standard Cost 25 board feet 4 squares 12 DLH $5/board foot cherry turning square (legs) $10/square 18/DL Variable averhead Fixed overhead 12 DLH $10/DLH 120 places, e.g. 5275.) Production Budget 3d Quarter feet of A n inventory on December 31, 2015. Prepare Sandoval's 2015 direct materials purchases budget for Direct Haterials Purchases Budget AnualExplanation / Answer
Answer:
A)
Prepare Sandoval's production budget for 2015. Assume that the desired ending inventory for 2015 is 600 tables.
a.
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Annual
Budgeted unit sales
2,500
2,700
2,900
2,200
10,300
+
Budgeted ending inventory
540
580
440
600
600
=
Total units required
3,040
3,280
3,340
2,800
10,900
-
Beginning inventory
500
540
580
440
500
=
Budgeted production
2,540
2,740
2,760
2,360
10,400
________________________________________________________
B
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Annual
Budgeted production
2,540
2,740
2,760
2,360
10,400
×
Standard board feet (b.f.)
× 25
× 25
× 25
× 25
× 25
=
Production needs
63,500
68,500
69,000
59,000
260,000
+
Budgeted ending inventorya
6,850
6,900
5,900
10,000
10,000
=
Total DM required (b.f.)
70,350
75,400
74,900
69,000
270,000
-
Beginning inventory
5,500
6,850
6,900
5,900
5,500
=
Budgeted purchases (b.f.)
64,850
68,550
68,000
63,100
264,500
×
Standard price per board foot
× $5
× $5
× $5
× $5
× $5
=
Budgeted purchases cost
$324,250
$342,750
$340,000
$315,500
$1,322,500
a10% of next quarter’s production needs
_______________________________________________
C)
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Annual
Budgeted production
2,540
2,740
2,760
2,360
10,400
×
Standard DLH per unit
× 12
× 12
× 12
× 12
× 12
=
Total DLH required
30,480
32,880
33,120
28,320
124,800
×
Standard wage rate
× $18
× $18
× $18
× $18
× $18
=
Budgeted DL cost
$548,640
$591,840
$596,160
$509,760
$2,246,400
_________________________________________________
D)
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Annual
DLH needed
30,480
32,880
33,120
28,320
-
DLH availablea
30,000
30,000
30,000
30,000
=
Overtime hours
480
2,880
3,120
0
6,480
×
Overtime rateb
× $27
× $27
× $27
× $27
× $27
=
Overtime cost
$12,960
77,760
84,240
$0
$174,960
+
Regular hours at $18/DLHc
540,000
540,000
540,000
540,000
2,160,000
=
Budgeted DL cost
$552,960
$617,760
$624,240
$540,000
$2,334,960
a60 employees × 500 hours
b($18 × 1.5)
cbased on 30,000 DLH
a.
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Annual
Budgeted unit sales
2,500
2,700
2,900
2,200
10,300
+
Budgeted ending inventory
540
580
440
600
600
=
Total units required
3,040
3,280
3,340
2,800
10,900
-
Beginning inventory
500
540
580
440
500
=
Budgeted production
2,540
2,740
2,760
2,360
10,400
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.