m athat corn Managerial Accounting F2F-1B Time Rema 2 of 10 MoreInfo a.Actual sa

Question

m athat corn Managerial Accounting F2F-1B Time Rema 2 of 10 MoreInfo a.Actual sales in December were $71,000. Selling price per unit is projected to remain stable at $12 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows January 99,600 February .118,800 March April ....108,000 May 115,200 s 103,200 b. Sales are 35%cash and 65% credtAll rodit sales are lected in he morth fol ing resale acturing has a policy that states t at each mon month's sales (in units). send gi entry of frished go ds should be 10% oftoflo ing d. Of each month's direct material purchases, 20% are paid for in the month of purcose, while the remaider is paid for in the month following purchase. Three pounds of direct is needed per unit at $2.00 per pound. Ending inventory of direct materials should be 20% of next month's production needs. e. Most of the labor at the manufacturing facility is indirect, but there is some direct labor incurred. The direct labor hours per unit is Most of the labor at the manufacturing facilily 0.05. The direct labor rate per hour is $9 per hour. All direct labor is paid for in the month in which the work is performed. The direct abor total cost for each of the upcoming three months is as follows: January February March 3,807 $ 4,442 4,293 31 f. Monthly manufacturing overhead costs are $5,500 for factory rent, $2,900 for other fixed manufacturing expenses, and $1.10 pe unit for variable manufacturing overhead. No depreciaton is included in these figures All expenses are paid in the month in which they are incurred pment for the administrative offices will be purchased in the upcoming quarter. In January, Dickson Manufacturing will purchase equipment for $5,000 (cash), while February's cash expenditure will be $12.200 and March's cash $16,600 expenditure wil be operating expenses of $1,800 per month. All operating h.Operating expenses are budgeted to be $1.25 per unit sold plus fxed expenses are paid in the month in which they are incurred Print Done FO

Explanation / Answer

1 Sale budget budgted unit sales January February March Quarter Sales 99,600 118800 115200 3,33,600 Cash 34,860 41,580 40,320 1,16,760 Credit sales 64,740 77,220 74,880 2,16,840 Cash collection budget January February March Quarter Cash sales 34,860 41,580 40,320 1,16,760 credit sales 46150 64,740 77,220 1,88,110 Total collection 81,010 1,06,320 1,17,540 3,04,870 2 Production budget January February March Quarter April Next Month budgeted sales 118800 115200 108000 103200 Percentage for next month 10% 10% 10% 10% Ending inventory 11880 11520 10800 10800 10320 Add Budgeted sales 99,600 118800 115200 333600 108000 Required units of available production 1,11,480 1,30,320 1,26,000 344400 1,18,320 Less beginning inventory 9960 11880 11520 9960 10800 Units to be produced 1,01,520 1,18,440 1,14,480 334440 1,07,520 3 Direct material budget January February March Quarter April Number of units produced 1,01,520 1,18,440 1,14,480 3,34,440 1,07,520 Basis of units 3 3 3 3 3 Production needs 33,840 39,480 38,160 1,11,480 35,840 Add ending material inventory 20% 7896 7632 7168 7168 Total material requirements 41736 47112 45328 118648 Less beginning material inventory 6768 7896 7632 6768 Material to be purchased 34968 39216 37696 111880 Material price per unit 2 2 2 2 Total cost of direct material purchases 69936 78432 75392 223760 4 Cash payment January February March Quarter 20% of current month DM purchase 13987 15686 15078 44752 80% of last month DM purchase 43000 55949 62746 Total cash payments 56987 71635 77824 44752 5 direct labor budget January February March Quarter Production budget units 1,01,520 1,18,440 1,14,480 3,34,440 Per unit direct hours required 0.05 0.05 0.05 0.05 Total labor hours needed 5076 5922 5724 16722 Labor price per hour 9 9 9 9 Labor dollars 45684 53298 51516 150498

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