Question

Ceder Company has compiled the following data for the upcoming year: Sales are expected to be 15,500 units at $55.00 each. Each unit requires 2 pounds of direct materials at $2.80 per pound. Each unit requires 1.6 hours of direct labor at $20.00 per hour. Manufacturing overhead is $3.80 per unit. Beginning raw materials inventory is $4,300.00. Ending raw materials inventory is $5,300.00 Selling and administrative costs totaled $137,070. Required: 1. Determine Ceder's budgeted cost of goods sold. (Do not round the intermediate values.) Budgeted Cost of Goods Sold 2. Complete Ceder's budgeted income statement. (Do not round the intermediate values.) CEDER CORP. Budgeted Income Statement Budgeted Sales Revenue Budgeted Gross Margin Budgeted Net Operating Income

Answer 1

Solutions:

Е F 4 5 6 7 Ceder Company 10 Computation of budgeted Cost of Goods sold 11 Particulars Per Unit $86,800 $496,000 $58,900 Direct Material (2*$2.80*15500) Direct labor (1.6*$20*15500) Manufacturing overhead ($3.80*15500) 12 13 14 15 $641,700 Budgeted Cost of Goods sold 16 17 18 19 20 21 22 23 Budgeted Income Statement Sales (15500*$55) Budgeted Cost of Goods sold Gross Profit $852,500 $641,700 $210,800 $137,070 24 25 26 27 Less: Selling and administrative costs 28 $73,730 Budgeted Net Income 29 30 31 32 33 34 35 36 37 38 153 (24) Sheet188 (2) Sheet608 (4) Sheet753 Sheet645 (2) II