Question

33.33 points Required information Required: Compute the following for Iguana, Inc, for the second quarter (April, May, and June) April May 1. Budgeted Sales Revenue 2. Budgeted Production in Unts Budgeled Cost of Raw Material Purchases Budgeted Direct Labor Cost 4. & Budgeled Cost of Goods Sold Total Budgeted Seling and Adm. Expenses $000 References eBook & Resources Cojecve: 08-03a Prepare the foloning Learring Objntive: 08-03 Prepare following components of the operating budget Production budge Leaming Objective: 08-03 Prepare the to?owing Difficulty: 3 Hard budget Raaw materiais purchases budget

Answer 1

1 Budgeted sales revenue 2 budgeted production in units 3 budgted cost of raw material 4 budgeted direct labor cost 5 budgeted manufacturing overhead may june Qarter 8,2509,500 12,000 29,750 1,240 3,71043504,715 12,775 8,680 2,544 23,800 2,545 350 420 470 450 2,9403,2908 852 882 7,600 9,600 810 7 Total al Budgeted selling and administrative 815 Working Note: 1.sales bud Budgeted units sales x selling price per unit Total une 1,190 25 8,2509,500 12,000 29,750 330 380 25 25 25 Sales 2) Production bud Budgeted units sales Add: Desired Endi Total Needs Less: Beginning Inventory une 330 380 480 455 40% of next month unit sale 482 572 662 657 in unit 350 420 470 475 3).direct material bud ired production in units of finished 350 420 470 1,240 x units of raw material needed per unit o finished units of raw material needed to meet Add: Desired Ending Inventory(30% of next month production Total Needs Less: Beginning In Required In x cost per unit cost of raw material to be purchased 1,400 1,6801,880 4, 4,960 5,530 1,904 2,244 2,450 504 1,484 1,7401,886 5,110 2.50 2.50 2.50 3,7104,3504,71512,775 トト1ー Sheet1 183 Sheet1 184 Sheet1 185 Sheet1 186 Sheet1 187 Sheet1 188 Sheet1 189 | Sheet1190 ENG 22:58 US 03/04/2018

4).direct labor budget required production in units of finished x hours require per unit (30/60) total hours required x ost per unit direct labor cost selling expense budget ril may Budgeted units sales arter 470 1240 620 350 420 330 380 480 1,190 x variable expense per unit 0.500.50 0.50 165 190 240 650 650 650 210 235 vairable selling expense add: fixed expense total 175 595 2,450 2,9403,2908,680 815 840 890 2,545 May June Quarter 470 1,240 5.budgeted manufacturing overhead on in units of finished 350 0.60 0.60 0.60 210 420 x variable cost per unit allocated variable overhead fixed overhead Total overhead 0.60 252 282 744 810 8528822,544 calaulation of unit cost direct material (4*2 direct labor (0.5 14 variable manufacturing overhead fixed manufacturing overhead (7200/3000) unit cost 10.00 7.00 0.60 2.40 20.00 cost of unit sold xunit cost cost of goods sold June arter 330 380 480 1,190 20.00 20.00 20.00 20.00 6,600 7,600 9,600 23,800 Sheeti183 Sheet1184 Sheet1 185Sheet1186Sheeti 187 Sheeti 188 Sheett 189Sheet1190 ENG 22:59 US 03 04/2018