Question

A Requirements Prepare the following for April: 1. Revenues budget 2. Production budget in units 3. Direct material usage budget and direct material purchases budget 4. Direct manufacturing labor cost budget 5. Manufacturing overhead cost budgets for each of the three activities 6. Budgeted unit cost of ending finished goods inventory and ending inventories budget 7. Cost of goods sold budget 8. Nonmanufacturing costs budget 9. Budgeted income statement (ignore income taxes) 10. How does preparing the budget help Animal Gear's management team better manage the company? Print Done

Answer 1

1.

Revenues Budget
	Units	Selling price	Total Revenues
Cat-allac	580	$                190	$       110,200
Dog-errific	215	$                260	$         55,900
Total			$       166,100

2.

Production Budget
	Cat-allac	Dog-errific	Total
Expected Unit Sales	580	215	795
Add : Desired Ending Finished Good Units	45	25
Total Required Units	625	240	865
Less : Beginning Finished Good units	25	40
Required Production units	600	200	800

3.

Direct Materials Budget
	Plastic	Metal	Total
Required Units for production
Cat-allac	1800	300	2100
Dog-errific	1000	200	1200
Total Material required for Production	2800	500
Add : Desired Ending inventory	420	70
Total Required Units	3220	570	3790
Less : Beginning inventory	220	80
Total Units to be Purchased	3000	490	3490
Unit Price	$                 4.00	$               3.00
Total costs for direct materials	$            12,000	$             1,470	$         13,470

4.

Direct Labor Budget
	Cat-allac	Dog-errific	Total
Units to be produced	600	200
Labor hours per unit	3	5
Total Labor hours required	1800	1000
Hourly Rate	$                     14	$                   14
Total cost of direct labor	$            25,200	$          14,000	$         39,200

As per HOMEWORKLIB RULES we are suppose to answer 4 parts, i have answered 4, so kindly post others separately