Question

Please Answer All Part B in Order.

Better By the Numbers began operations on January 1, 2018. The ounce bottles of hand and body lotion called Radiant One. The lo bottle cases for $100 per case. There is a selling commission of V 1, 2018. The company produces eight- adiant One. The lotion is sold wholesale in 12- Is a selling commission of $20 per case. a factory overhead costs are as follows: January 2018 direct materials, direct labor and factory overhead costs are Nutrient base Essential oils Bottle (8-oz.) DIRECT MATERIALS Cost Units per Cost per Behavior Case unit variable 100 oz. $ 0.02 variable 30 oz. $ 0.30 variable 12 bottles $ 0.50 Direct Materials Cost per Case $ 2.00 9.00 6.00 $ 17.00 Department Cost Behavior Mixing Filling variable DIRECT LABOR Time per Labor Rate Case per Hour 20 min. $ 18.00 5 min. $ 14.40 25 min. Direct Labor Cost per Case $ 6.00 1.20 $ 7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities mixed $ 600 Facility lease fixed 14,000 Equipment depreciation fixed 4,300 Supplies fixed 660 $ 19,560

Answer 1

Requirement 5 Better By the numbers Production Budget For the month ended August 31, 2018 Cases 1500 Sales Demand (+) Desired finished goods inventory, Aug 31 Cost of goods available (-) Estimated Finished goods inventory, Aug 1 Budgeted Production 175 1675 -300 1375 Requirement 6 Total Better By the numbers Direct Materials Purchase Budget For the month ended August 31, 2018 Nutrient Base Essential Oils Bottle (8-oz) Material required for production 137500 41250 16500 (+) Desired materials, Aug 31 1000 240 Total Material needs 138500 41610 16740 (-) Estimated materials, Aug 1 -250 -290 -600 Budgeted Materials purchases 138250 41320 16140 Cost per unit 0.02 $ 0.30 $ 0.50 Budgeted Cost of Material purchases 2,765 $ 12,396 $ 8,070 360 $ 23,231

Requirement 7 Better By the numbers Direct Labor Budget For the month ended August 31, 2018 Mixing Filling Labor hours required for production 458 115 (1375*20/60) (1375*5/60) Labor hour rate $ 18.00 $ 14.40 Direct Labor cost $ 8,244 $ 1,656 Total 573 $ 9,900 Requirement 8 Better By the numbers Factory OH Budget For the month ended August 31, 2018 Variable Utilities Facility Lease Equipment Depreciation Supplies Total Factory OH Fixed $ 14,000 4,300 660$ 18,960 $ Total 600 14,000 4,300 660 19,560 $ 4, $ $

Requirement 9 (1500*100) $ 1,50,000 $ 12,000 Better By the numbers Budgeted Income Statement For the month ended August 31, 2018 Budgeted Sales (-) Budgeted Cost of Goods sold Beginning Finished Goods Inventory (+) Material consumed Beginning Material Inventory | $ 392 (+) Material purchases. $ 23,231 (-) Ending material inventory $ -248 (+) Direct Labor (+) Factory OH Cost of Goods Available for sale (-) Ending Finished Goods Inventory Cost of Goods sold Gross Margin (-) Selling and Administrative expenses Net Income $ $ $ $ $ 23,375 9,900 19,560 64,835 -7,000 57,835 92,165 -30,000 62,165 $ $ $ (1500*20)