Homework Answers
The question is very long and it is practically impossible to complete all the parts within the available time as Part 1 (Photo 2) requires multiple schedules to be prepared. Therefore, I have completed Part 1 (Photo 2) and Part 2 (Photo 3) with all the details.
_____
Part 1)
Step 1: Calculate Budgeted Sales Revenue
The value of budgeted sales revenue for each month and quarter is determined as below:
| April | May | June | 2nd Quarter Total | |
| Expected Unit Sales (A) | 280 | 330 | 430 | 1,040 |
| Unit Selling Price (B) | 25 | 25 | 25 | 25 |
| Budgeted Sales Revenue (A*B) | $7,000 | $8,250 | $10,750 | $26,000 |
____
Step 2: Calculate Budgeted Production in Units
The budgeted production in units for the month and quarter are calculated as below:
| April | May | June | 2nd Quarter Total | |
| Expected Unit Sales | 280 | 330 | 430 | 1,040 |
| Add Desired Ending Units | 132 (330*40%) | 172 (430*40%) | 162 (405*40%) | 162 |
| Less Opening Inventory | 112 (280*40%) | 132 (330*40%) | 172 (430*40%) | 112 |
| Budgeted Production in Units | 300 | 370 | 420 | 1,090 |
____
Step 3: Calculate Budgeted Cost of Raw Material Purchases
The budgeted cost of raw material purchases is arrived as below:
| April | May | June | 2nd Quarter Total | |
| Budgeted Production in Units | 300 | 370 | 420 | 1,090 |
| Material Requirement Per Unit | 4 | 4 | 4 | 4 |
| Total Material Needed for Production | 1,200 | 1,480 | 1,680 | 4,360 |
| Add Ending Raw Material Inventory | 444 (1,480*30%) | 504 (1,680*30%) | 510 (425*4*30%) | 510 |
| Less Beginning Raw Material Inventory | 360 (1,200*30%) | 444 (1,480*30%) | 504 (1,680*30%) | 360 |
| Budgeted Raw Material Purchases (C) | 1,284 | 1,540 | 1,686 | 4,510 |
| Material Cost Per Foot (D) | 2 | 2 | 2 | 2 |
| Budgeted Cost of Raw Material Purchases (A*B) | $2,568 | $3,080 | $3,372 | $9,020 |
____
Step 4: Calculate Budgeted Direct Labor Cost
The value of budgeted labor cost for each month and 2nd quarter is calculated as below:
| April | May | June | 2nd Quarter Total | |
| Budgeted Production in Units | 300 | 370 | 420 | 1,090 |
| Direct Labor Requirement Per Unit | 0.5 | 0.5 | 0.5 | 0.5 |
| Total Direct Labor Hours Required (E) | 150 | 185 | 210 | 545 |
| Direct Labor Rate (F) | 11 | 11 | 11 | 11 |
| Budgeted Direct Labor Cost (E*F) | $1,650 | $2,035 | $2,310 | $5,995 |
____
Step 5: Calculate Budgeted Manufacturing Overhead
The value of budgeted manufacturing overhead for each month and 2nd quarter is determined as follows:
| April | May | June | 2nd Quarter Total | |
| Budgeted Production in Units (G) | 300 | 370 | 420 | 1,090 |
| Variable Manufacturing Overhead Rate (H) | 0.6 | 0.6 | 0.6 | 0.6 |
| Budgeted Variable Manufacturing Overhead (G*H) | 180 | 222 | 252 | 654 |
| Add Fixed Manufacturing Overhead | 600 | 600 | 600 | 1,800 |
| Budgeted Manufacturing Overhead | $780 | $822 | $852 | $2,454 |
____
Step 6: Calculate Budgeted Cost of Goods Sold
The budgeted cost of goods sold for each month and 2nd quarter is arrived as follows:
| April | May | June | 2nd Quarter Total | |
| Expected Unit Sales [I] | 280 | 330 | 430 | 1040 |
| Budgeted Manufacturing Cost Per Unit (4*2 + 11*.50 + .60 + 7,200/3,000) [J] | 16.5 | 16.5 | 16.5 | 16.5 |
| Budgeted Cost of Goods Sold [I*J] | $4,620 | $5,445 | $7,095 | $17,160 |
____
Step 7: Calculate Total Budgeted Selling and Administrative Expenses
| April | May | June | 2nd Quarter Total | |
| Expected Unit Sales (K) | 280 | 330 | 430 | 1,040 |
| Variable Selling and Administrative Rate (L) | 0.5 | 0.5 | 0.5 | 0.5 |
| Budgeted Variable Selling Expenses (K*L) | 140 | 165 | 215 | 520 |
| Add Budgeted Fixed Selling Expenses | 700 | 700 | 700 | 2,100 |
| Total Budgeted Selling and Administrative Expenses | $840 | $865 | $915 | $2,620 |
____
Tabular Representation (as Required in Question)
| April | May | June | 2nd Quarter Total | ||
| 1 | Budgeted Sales Revenue | 7,000 | 8,250 | 10,750 | 26,000 |
| 2 | Budgeted Production in Units | 300 | 370 | 420 | 1,090 |
| 3 | Budgeted Cost of Raw Material Purchases | 2,568 | 3,080 | 3,372 | 9,020 |
| 4 | Budgeted Direct Labor Cost | 1,650 | 2,035 | 2,310 | 5,995 |
| 5 | Budgeted Manufacturing Overhead | 780 | 822 | 852 | 2,454 |
| 6 | Budgeted Cost of Goods Sold | 4,620 | 5,445 | 7,095 | 17,160 |
| 7 | Total Budgeted Selling and Administrative Expenses | 840 | 865 | 915 | 2,620 |
____
Part 2)
The budgeted income statement is prepared as follows:
| IGUANA INC. | ||||
| Budgeted Income Statement | ||||
| For the Quarter Ending June | ||||
| April | May | June | 2nd Quarter Total | |
| Budgeted Sales Revenue | 7,000 | 8,250 | 10,750 | 26,000 |
| Less Budgeted Cost of Goods Sold | 4,620 | 5,445 | 7,095 | 17,160 |
| Budgeted Gross Margin | 2,380 | 2,805 | 3,655 | 8,840 |
| Budgeted Selling and Administrative Expenses | 840 | 865 | 915 | 2,620 |
| Budgeted Net Operating Income | $1,540 | $1,940 | $2,740 | $6,220 |
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Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear...
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Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear...
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Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear...
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lguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear feet of bamboo, which costs $2.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $15 per hour. guana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month's sales. Ending raw materials inventory should be 30 percent of next month's production Expected unit sales (frames) for the upcoming months follow: March...
Required Information [The following Information applies to the questions displayed below.] guana, Inc., manufactures bamboo picture frames that sell for $20 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $13 per hour. Iguana has the following inventory policies: Ending finished goods Inventory should be 40 percent of next month's sales. Ending raw materlals Inventory should be 30 percent of next month's...
If you could help me out that would be awesome, let me know,
thanks
Chuck, a single taxpayer earns $58,500 in taxable income and $20,800 in interest from an investment in City of Heflin bonds. (Use the U.S tax rate schedule.) Required: a. How much federal tax will he owe? b. What is his average tax rate? c. What is his effective tax rate? d. What is his current marginal tax rate? Complete this question by entering your answers in...
Hello,
Would you please help me understand how to solve these problems.
Thank you so much!
Alliance Company's budgets production of 24,000 units in January and 28,000 units in the February. Each finished unit requires 4 pounds of raw material K that costs $2.50 per pound. Each month's ending raw materials inventory should equal 40% of the following month's budgeted materials. The January 1 inventory for this material is 38,400 pounds. What is the budgeted materials cost for January? Multiple...
i need help with problems 6-8 if possible and could you walk
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Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $14 per hour. Iguana has the following inventory policies: • Ending finished goods inventory should be 40 percent of next month's sales. • Ending raw materials inventory should be 30 percent of next month's production. Expected unit sales (frames) for the upcoming months...
Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $14 per hour. Iguana has the following inventory policies Ending finished goods inventory should be 40 percent of next month's sales. Ending direct materials inventory should be 30 percent of next month's production. Expected unit sales (frames) for the upcoming months follow March...
Please help me to solve this problem, and give me the correct
answer, thank you so much
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