Question

Project #2 Sales Projections in Units January February March April May 13.402 45,819 44,164 53,722 52,482 Projected Sales Price/Unit $ 450.00 Monthly Projected Selling & Administrative Expenses Variable Cost/Unit $16.00 Fixed Costs $5,519 Production: Desired Ending Inventory Beginning Inventory (new business) 59.0% 0 64.6% Materials Desired Ending Inventory Number of Materials per Unit Projected Cost/Material Unit Beginning Inventory (new business) 11.0 $23.00 0 Direct Labor Time per Unit (in hours) Cost per Hour 1.00 $21.00 Manufacturing Overhead Variable Cost/Unit $5.00 Fixed Costs $5,625

Answer 1

Project Income Statement
Particulars	Jan	Feb	Mar
Sales in units	13,402	45,819	44,164
Sales revenue (unit * 450)	6,030,900	20,618,550	19,873,800
Less: Cost of Goods sold
Direct Material (Unit*11*23)	3,390,706	11,592,207	11,173,492
Direct Labor (Unit*1*21)	281,442	962,199	927,444
Manufacturing Overheads
Variable cost (Unit*5)	67,010	229,095	220,820
Fixed cost	5,625	5,625	5,625
Gross Profit (Margin)	2,286,117	7,829,424	7,546,419
Less: Selling and administrative (operating) expenses
Variable cost (Unit*16)	214,432	733,104	706,624
Fixed cost	5,519	5,519	5,519
Operating Income	2,066,166	7,090,801	6,834,276
Product cost per unit
Item	Amount
Direct Material (11*23)	253
Direct Labor (1*21)	21
Variabel Manufacturing Overhead (Fixed ignored)	5
Total Unit cost	279
Manufacturing overhead budget
Particulars	Jan	Feb	Mar
Production in units	13,402	45,819	44,164
Variable OH Rate/unit (279+16)	295	295	295
Anticipated VOH Cost	3,953,590	13,516,605	13,028,380
Fixed OH Cost (5626+5519)	11,144	11,144	11,144
Total anticipated OH cost	3,964,734	13,527,749	13,039,524
Predetermined OH Rate
Total estimated OH cost (for the quarter)	30,532,007	295	Per DLH
Total estimated DLH's (for the quarter)	103,385
MOH per unit
Predetermined MOH rate (fixed cost ignored)	5
DLH's per unit (1hr)	1
MOH per unit of product	5
Direct Labor Budget
Particulars	Jan	Feb	Mar
Number of units produced	13,402	45,819	44,164
Direct Labor Hours per unit	1	1	1
Total Labor hours needed	13,402	45,819	44,164
Cost/Direct labor hour	21	21	21
Total direct labor cost	281,442	962,199	927,444
Direct labor hour/unit	1 hour
Cost/direct labor hour	21
Cost of direct labor per product	21
Materials requirement budget
Particulars	Jan	Feb	Mar	Apr
Units to be produced	13,402	45,819	44,164	53,722
Material/unit	11	11	11	11
Total production Need	147,422	504,009	485,804	590,942
Desired ending inventory (64.6% next month inventory)	325,590	313,829	381,749
Total Materials needed	473,012	817,838	867,553
Beginning Inventoy (last month ending)	-	325,590	313,829
Total materials need to be purchased	473,012	492,249	553,723
Cost per unit of material	23	23	23
Total material cost	10,879,272	11,321,717	12,735,632
Material/unit	11
Cost per unit of material	23
Cost of Material per product	253
Production Budget
Particulars	Jan	Feb	Mar	Apr
Sales in units	13,402	45,819	44,164	53,722
Desired ending inventory (59%)	27,033	26,057	31,696
Total units needed	40,435	71,876	75,860
Beginning Inventory (last month ending)	-	27,033	26,057
Total production in units	40,435	44,843	49,803
Sales & Administrative expense budget
Particulars	Jan	Feb	Mar
Sales in units	13,402	45,819	44,164
Variable S&A per unit	16	16	16
Anticipated variable cost	214,432	733,104	706,624
Fixed S&A cost	5,519	5,519	5,519
Total S&A cost	219,951	738,623	712,143
Sales Budget
Particulars	Jan	Feb	Mar	Apr
Sales in units	13,402	45,819	44,164	53,722
Selling price unit	450	450	450	450
Anticipated sales dollars	6,030,900	20,618,550	19,873,800	24,174,900

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