Question

actice Exercises EE6-1 235 PE 6-1A Flexible budgeting At the beginning of the period, the Assembly Department budgeted direct labor of $12.000 and property tax of $12,000 for 7,000 hours of production. The department actually com- pleted 7,500 hours of production. that it uses flexible budgeting. OBJ. 2 Determine the budget for the department, assuming EE6-1 p 235 PE61B Flexible budgeting OBJ. 2 At the beginning of the period, the Fabricating Department budgeted direct labor of $9,280 and equipment depreciation of $2,300 for 640 hours of production. The department actually completed 600 hours of production. Determine the budget for the department assuming that it uses flexible budgeting. EE6-2 p 238 PE 6-2A Production budget OBJ. 4 MyLife Chronicles Inc. projected sales of 240,000 diaries for 2016. The estimated January 2016, inventory is 19,900 units, and the desired December 31, 2016, inventory is 1 units. What is the budgeted production (in units) for 2016 8,8oo EE6-2 p 238 PE 6-2B Production budget OBJ. 4 Magnolia Candle Inc. projected sales of 75,000 candles for 2016. The estimated January 1, 2016, inventory is 3,500 units, and the desired December 31, 2016, inventory is 2,700 units. What is the budgeted production (in units) for 2016 OBJ.4 PE 6-3A MyLife Chronicles Inc. budgeted production of 238,900 diaries in 2016. Paper is required to produce a diary. Assume five square yards of paper are required for each diary. The estimated January 1, 2016, paper inventory is 32,400 square yards. The desired December 31, 2016, paper inventory is 30,800 square yards. If paper costs $0.30 per square yard, determine the direct materials purchases budget for 2016. EE 6-3 p240 Direct materials purchases budget OBJ. 4 Direct materials purchases budget PE 6-3B Magnolia Candle Inc. budgeted production of 74,200 candles in 2016. Wax is required to produce a candle. Assume eight ounces (one-half of a pound) of wax is required for each candle. The estimated January 1, 2016, wax inventory is 2,500 pounds. The desired December 31, 2016, wax inventory is 2,100 pounds. If candle wax costs $4.10 per pound determine the direct materials purchases budget for 20106. EE 6-3 p 240

Answer 1

Req 6-1A
For 7000 hours:
Budgeted Direct labour cost:			112000
Property tax			12000
For 7500 Hours:
Budgeted Direct labour cost			120000
	(112000 /7000 *7500)
Property tax			12000
Note: The Property tax is considered as fixed cost of the company irrespective of level of activities
Req 6-1B
For 640 hours
Direct labouur cost			9280
Equipment depreciation			2300
For 600 hours:
Labour cost			8700
(9280 /640 *600)
Equipment depreciation			2300
Note: Equipment depreciation is considered as fixed cost irrespective of level of activities
Req 6-2A
Budgeted Production-2016
Budgeted Sales units			240000
Add: Ending Inventory			18800
Total Units available			258800
Less: Beginning Inventory			19900
Budgeted Production units			238900
Req 6-2B
Budgeted Production-2016
Budgeted Sales units			75000
Add: Ending Inventory			2700
Total Units available			77700
Less: Beginning Inventory			3500
Budgeted Production units			74200
Req 63A
Material Purchase Budget:
Budgeted Production			238900
Units required per unit			5
Total Production requirement			1194500
Add: Ending inventory of Paper			30800
Total paper requirement			1225300
Less: Beginning Inventory of Paper			32400
Budgeted Purchase units			1192900
Cost per unit			0.3
Budgeted Purchasse in $			357870
Req 6-3B
Material Purchase Budget:
Budgeted Production			74200
Units required per unit			8
Total Production requirement			593600
Add: Ending inventory of Wax			2100
Total Wax requirement			595700
Less: Beginning Inventory of Wax			2500
Budgeted Purchase units			593200
Cost per unit			4.1
Budgeted Purchasse in $			2432120