Question

Joshua Hill, Bonita & Hill Fabricators' production manager, has just received the company's sales budget for the first quarter: February March 10.1409,100 Quarter 24.440 Budgeted unit sales Budgeted ending inventory January 5.200 2,028 7.228 1.456 1,820 1,508 1,508 Total units required 11.960 2,028 10.608 1,820 25.948 1456 Beginning inventory Budgeted production 5,772 9 .932 8,788 24,492 Its manufacturing overhead budget for the first quarter is as follows: January February March Quarter DLH worked 1,443 2,483 2,197 6,123 VOH per DLH $0.70 $0.70 $0.70 $0.70 1,010 1,738 1.538 4286 Budgeted VOH Budgeted FOH 29.250 29.250 29.250 87,750 Total Budgeted MOH 30,260 30,988 30,788 92,036 Noncash MOH items Depreciation 7,800 $22,460 7,800 $23,188 7,800 $22.988 23,400 $68,636 Total Cash MOH cost He also has received the direct materials purchases budget and direct labor budget which were as follows: January February March Quarter April Budgeted production 5,772 9,9328,788 24.492 7,228 Standard pounds per unit 1 x5 x 5 x 5 x 5 x5 Production needs 28,860 49,660 43,940 122.460 36,140 Budgeted ending inventory 4.966 4,394 3,614 Total DM required (lbs.) 33,826 54054 47.554 124074 Beginning inventory 4.914 4,966 4,394 Budgeted purchases (lbs.) 28,912 Standard cost per pound $0.40 $11,565 49,088 $0.40 $19,635 43,160121.160 $0.40 $0.40 $17.264 $48,464 Budgeted purchases cost January February March Quarter Budgeted production 5.772 9 .932 8,788 24.492 Standard DLH per unit Total DLH required * 0.25 1.443 $20 0.25 2,483 $20 0.25 2,197 $20 0.25 6,123 $20 Standard wage rate Budgeted DL cost $28.860 $49.660 $43,940 $122.460 Joshua plans to have 1,456 finished bricks at a cost of $12.740 in inventory at the beginning of the year. The company applies manufacturing overhead based on direct labor hours, and the current predetermined rates are $12 per direct labor hour for fixed manufacturing overhead and $0.70 per direct labor hour for variable manufacturing overhead. Prepare Bonita & Hill's ending inventory and cost of goods sold budget for the first quarter. Assuming that the company has no beginning and ending WIP inventory. (Round unit cost to 3 decimal places, eg. 0.533 & all other answers to decimal places, e.g. 5,275.)

Answer 1

Direct Materials
Beginning DM Inventory	1966
DM Purchases	48464
DM used in Production (122460 x $0.40)	48984
Ending DM Inventory	1446
Finished Goods Inventory
Unit Costs:
Direct Material (5 x $0.40)	2.000
Direct Labor (0.25 x $20)	5.000
Overhead [0.25 x ($12 + $0.70)]	3.175
Total Std. Cost per unit	10.175
Ending FG Inventory (units)	1508
Ending FG Inventory ($)	15344

Provide drop-downs for the cost of goods sold budget in the comments section.