|
|
|
(a) Sales Budget for the year ending December 31, 2017 as follow-:
Particulars | JB50 | JB 60 | TOTAL |
EXPECTED UNIT SALES | 404400 | 202600 | 607000 |
UNIT SELLING PRICE | $23 | $28 | |
TOTAL SALES | $9301200 | $5672800 | 14974000 |
(b) Production Budget for the year ending December 31,2017 as follows
Particulars | JB 50 | JB 60 |
Expected sales Units | 404400 | 202600 |
Desired ending finish goods | 27300 | 19000 |
Beginning of finish goods | 34700 | 13000 |
PRODUCTION UNIT | 397000 | 208600 |
Direct material budget | ||
DIRECT MATERIALS REQ PER UNIT (POUNDS) | 2 | 2 |
DIRECT MATERIALS REQ(POUNDS) | 794000 | 417200 |
Desired ending direct materials pounds | 34200 | 19400 |
Beginning of direct materials pounds | 44400 | 12000 |
DIRECT MATERIAL PURCHASE | 783800 | 424600 |
Cost per Pound | $3 | $3 |
DIRECT MATERIAL COST (A) | $2351400 | $1273800 |
Direct Labour Budget | ||
DIRECT LABOUR TIME PER UNIT | 0.4 | 0.6 |
DIRECT LABOUR TIME REQ | 158800 | 125160 |
DIRECT LABOUR RATE | $10 | $10 |
DIRECT LABOUR COST (B) | $1588000 | $1251600 |
TOTAL PRODUCTION COST (A+B) | $3939400 | $2525400 |
Culver Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants...
Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 403,400 203,700 Unit selling price $22 $27 Production budget: Desired ending finished goods units 29,900 17,700 Beginning finished goods units 34,700 12,000 Direct materials budget: Direct materials per unit (pounds) 1 2 Desired ending direct materials pounds 32,800 16,600 Beginning direct materials pounds 43,800 13,300 Cost per...
Pina Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2017. 1. Sales: quarter 1, 29,200 bags; quarter 2, 43,200 bags. Selling price is $61 per bag. 2. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: Type of Inventory January 1 April...
Fuqua Company’s sales budget projects unit sales of part 198Z of 10,300 units in January, 13,000 units in February, and 14,000 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $5 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2016....
Culver Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 404,400 202,600 Unit selling price $23 $28 Production budget: Desired ending finished goods units 27,300 19,000 Beginning finished goods units 34,700 13,000 Direct materials budget: Direct materials per unit (pounds) 2 2 Desired ending direct materials pounds 34,200 19,400 Beginning direct materials pounds 44,400 12,000 Cost per...
Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2017. 1. Sales: quarter 1, 28,100 bags; quarter 2, 43,400 bags. Selling price is $63 per bag. 2. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: Type of Inventory January...
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows. Quarter HD-240 1 5,200 2 7,240 3 8,360 4 10,310 The January 1, 2017, inventory of HD-240 is 2,080 units. Management desires an ending inventory each quarter equal to 40% of the next quarter’s sales. Sales in the first quarter of 2018 are expected to be 25% higher than sales in the same quarter in 2017. Prepare quarterly production budgets for each quarter...
Exercise 21-4 Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows. Quarter HD-240 1 5,200 2 7,220 3 8,280 4 10,180 The January 1, 2017, inventory of HD-240 is 2,080 units. Management desires an ending inventory each quarter equal to 40% of the next quarter’s sales. Sales in the first quarter of 2018 are expected to be 25% higher than sales in the same quarter in 2017. Prepare quarterly production budgets for...
Sheffield Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 403,200 203,400 Unit selling price $22 $28 26,700 32,500 19,700 11,400 Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor...
Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2017. 1. Sales: quarter 1, 28,100 bags; quarter 2, 43,400 bags. Selling price is $63 per bag. 2. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: Type of Inventory January...
Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 403,700 203,300 Unit selling price $23 $28 Production budget: Desired ending finished goods units 27,900 19,300 Beginning finished goods units 31,600 12,600 Direct materials budget: Direct materials per unit (pounds) 2 3 Desired ending direct materials pounds 33,600 16,700 Beginning direct materials pounds 43,200 14,800 Cost per...