Explain each of the operating budgets, sales, production, direct materials, direct labor, manufacturing overhead, cost of...
Explain each of the operating budgets, sales, production, direct materials, direct labor, manufacturing overhead, cost of goods sold, and selling and administrative expenses.
Homework Answers
A sales budget is refers to the direct outcome of sales forecast. It is based on the consideration of future prediction of sales, competition in the market, past sales trends, demand and supply situation, seasonal changes that affect sales and so on.
The production budget calculates the number of units the firm requires to produce in order to meet its sales budget
The direct materials budget computes the materials that are require to be purchased, by time period to ensure to fulfill the production budget's requirements.
Direct labor budget refers to the number of direct labor hours and total direct labor cost needed for process of production
Overhead budget refers to variable overhead costs and fixed overhead costs for process of production
A manufacturing overhead budget includes the costs for process of production, other than labor and raw materials that would be incurred by a manufacturing department or company during a fiscal year
Cost of goods sold budget establishes the inventory expense forecast and is often for the largest expenses on an income statement. It would not be necessary for a service company because they are not selling the product
Selling and Administrative Budget refers to expenses indirectly related to the sale of specific goods, thus are considered for in the selling and administrative budget.
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Explain each of the operating budgets, sales, production, direct
materials, direct labor, manufacturing overhead, cost of...
ncome Statements under The reporting of the costs of manufactured products, normally direct materials, direct labor,...
ncome Statements under The reporting of the costs of manufactured products, normally direct materials, direct labor, and factory overhead, as product costs.Absorption Costing and The concept that considers the cost of products manufactured to be composed only of those manufacturing costs that increase or decrease as the volume of production rises or falls (direct materials, direct labor, and variable factory overhead).Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated...
39. Budgeting for Sales, Production, Direct Materials, Direct Labor, and Manufacturing Overhead. ...
NEED ANSWER OF THE " F " PART ONLY!
39. Budgeting for Sales, Production, Direct Materials, Direct Labor, and Manufacturing Overhead. Sports Bars Inc., produces energy bars and sells them by the case (1 unit - 1 case). Information to be used for the operating budget this coming year follows: Average sales price for each case is estimated to be $25. Unit sales for this coming year, ending December 31, are expected to be as follows First quarter 80,ooo Second...
The budgeted income statement is a combination of: All the operating budgets. All the operating budgets...
The budgeted income statement is a combination of: All the operating budgets. All the operating budgets plus the budgeted balance sheet. The direct materials budget, the direct labor budget, and the manufacturing overhead budget. The production budget, the cost of goods sold budget, and the selling and administrative expense budget.
Sales Less operating expenses: $450,000 Direct labor cost Raw materials purchased Manufacturing overhead Selling/ admin. expenses...
Sales Less operating expenses: $450,000 Direct labor cost Raw materials purchased Manufacturing overhead Selling/ admin. expenses $70,000 165,000 85,000 142,000 462,000 ($12,000 Net operating loss ) ー Inventory balances: Raw Materials Work in process Finished goods August 1August 31 $8,000 $13,000 $16,000$21,000 $40,000 $60,000 That's not right! Something is wrong. Can you correct this income statement? Nutini Shoes Company Income Statement Raw material used For the Month Ending August 31 Cost of Goods Manufactured Cost of Goods Sold
Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work...
Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 655, eee $ 86, eee $ 140, eee $ 102, eee $ 44, eee $ 207, eee $ 226, eee Inventories Raw materials Work in process Finished goods Beginning $ 8,eee $ 5,400 $ 73,eee Ending $ 11, eee $ 20,800 $ 25, 120 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw...
Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work...
Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 656,000 $ 82,000 $ 136,000 $ 104,000 $ 45,000 $ 204,000 $ 225,000 Inventories Raw materials Work in process Finished goods Beginning $ 8,400 $ 5,600 $ 74,000 Ending $ 10,600 $ 20,300 $ 25,400 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare...
Sales ........ Direct labor ....... Selling & administrative costs Raw materials purchased Manufacturing overhead $72,000 10,000...
Sales ........ Direct labor ....... Selling & administrative costs Raw materials purchased Manufacturing overhead $72,000 10,000 7,000 20,000 13,500 Inventory_ Raw materials .... Work-in-process Finished goods Beginning $10,000 18,000 21,000 Ending $ 5,000 17,000 16,500 What were the total manufacturing costs for September? O $ $25,000 O $43,500 O $49,500 O $48,500 Sales Direct labor Selling & administrative costs Raw materials purchased Manufacturing overhead $72,000 10,000 7,000 20,000 13,500 Inventory Raw materials Work-in-process Finished goods Beginning $10,000 18,000 21,000 Ending...
Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work...
Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $652,000 $ 82,000 $137,000 $102,000 $ 49,000 $208,000 $227,000 Inventories Raw materials Work in process Finished goods Beginning Ending $ 8,900 $10,300 $5,300 $20,600 $ 74,000 $25,500 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare a schedule of cost of goods sold. Assume that...
Dilia Company incurred manufacturing overhead cost for the year as follows: Direct materials $ 50 /unit...
Dilia Company incurred manufacturing overhead cost for the year as follows: Direct materials $ 50 /unit Direct labor $ 35 /unit Manufacturing overhead Variable $ 15 /unit Fixed ($25/unit for 1,500 units) $ 37,500 Variable selling and administrative expenses $ 10,500 Fixed selling and administrative expenses $ 20,000 The company produced 1,500 units and sold 1,200 of them at $225 per unit. Assume that the production manager is paid a 2 percent bonus based on the company’s net income. Required...
Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 MCO Leather Goods manufactures...
Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 MCO Leather Goods manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $5 per pound and 0.7 direct labor hours at a rate of $13 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $18,000 per month. The company's policy is to end each month with direct materials inventory equal to...
NEED ANSWER OF THE " F " PART ONLY!
39. Budgeting for Sales, Production, Direct Materials, Direct Labor, and Manufacturing Overhead. Sports Bars Inc., produces energy bars and sells them by the case (1 unit - 1 case). Information to be used for the operating budget this coming year follows: Average sales price for each case is estimated to be $25. Unit sales for this coming year, ending December 31, are expected to be as follows First quarter 80,ooo Second...
Sales Less operating expenses: $450,000 Direct labor cost Raw materials purchased Manufacturing overhead Selling/ admin. expenses $70,000 165,000 85,000 142,000 462,000 ($12,000 Net operating loss ) ー Inventory balances: Raw Materials Work in process Finished goods August 1August 31 $8,000 $13,000 $16,000$21,000 $40,000 $60,000 That's not right! Something is wrong. Can you correct this income statement? Nutini Shoes Company Income Statement Raw material used For the Month Ending August 31 Cost of Goods Manufactured Cost of Goods Sold
Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 655, eee $ 86, eee $ 140, eee $ 102, eee $ 44, eee $ 207, eee $ 226, eee Inventories Raw materials Work in process Finished goods Beginning $ 8,eee $ 5,400 $ 73,eee Ending $ 11, eee $ 20,800 $ 25, 120 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw...
Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 656,000 $ 82,000 $ 136,000 $ 104,000 $ 45,000 $ 204,000 $ 225,000 Inventories Raw materials Work in process Finished goods Beginning $ 8,400 $ 5,600 $ 74,000 Ending $ 10,600 $ 20,300 $ 25,400 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare...
Sales ........ Direct labor ....... Selling & administrative costs Raw materials purchased Manufacturing overhead $72,000 10,000 7,000 20,000 13,500 Inventory_ Raw materials .... Work-in-process Finished goods Beginning $10,000 18,000 21,000 Ending $ 5,000 17,000 16,500 What were the total manufacturing costs for September? O $ $25,000 O $43,500 O $49,500 O $48,500 Sales Direct labor Selling & administrative costs Raw materials purchased Manufacturing overhead $72,000 10,000 7,000 20,000 13,500 Inventory Raw materials Work-in-process Finished goods Beginning $10,000 18,000 21,000 Ending...
Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $652,000 $ 82,000 $137,000 $102,000 $ 49,000 $208,000 $227,000 Inventories Raw materials Work in process Finished goods Beginning Ending $ 8,900 $10,300 $5,300 $20,600 $ 74,000 $25,500 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare a schedule of cost of goods sold. Assume that...
Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 MCO Leather Goods manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $5 per pound and 0.7 direct labor hours at a rate of $13 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $18,000 per month. The company's policy is to end each month with direct materials inventory equal to...
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