Question

Required information The following information applies to the questions displayed below. FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements Tvpe of Box Direct material required per 100 boxes: Paperboard ($0.38 per pound) Corrugating medium ($0.19 per pound) 40 pounds 30 pounds 80 pounds 40 pounds Direct labor required per 100 boxes ($19.00 per hour) 0.20 hour 0.40 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 455,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total S 13,800 82,710 42,000 28,000 21,000 50,000 237,510

Answer 1

Statement Showing Sales Budget
	Box C	Box P	Total
Sales ( in units)	460000	460000	920000
Sales ($/Unit)	$1.30	$1.90
Sales Revenue	$598,000	$874,000	1472000
Statement Showing Production Budget
	Box C	Box P
Sales	460000	460000
Desired Ending inventory	7500	17500
Total Unit Needed	467500	477500
Less: Beg. Inventory	-12500	-22500
Production required	455000	455000
Statement Showing Raw material Budget- Paper Board
	Box C	Box P	Total
Production Required (inUnit)	460000	460000
Raw Material/Box	0.4	0.8
RM for Production ( in Pound)	184000	368000	552000
Desired Ending inventory			4500
Total Rawmaterial needed (in Pound)			556500
Beg. RM Inventory			-14500
RM to be purchased			542000
Price/Pound			$0.38
Cost of Purchase			$205,960.00
Statement Showing Raw material Budget- Corrugating
	Box C	Box P	Total
Production Required (Units)	460,000	460,000
Raw Material/Box	0.30	0.40
RM for Production (in Pound)	138,000	184,000	322,000
Desired Ending inventory			10,500
Total Rawmaterial needed (in Pound)			332,500
Beg. RM Inventory			(5,500)
RM to be purchased			327,000
Price/Pound			$0.19
Cost of Purchase			$62,130.00