Sales, production, direct materials, direct labor, and factory overhead budgets (similar...

Sales, production, direct materials, direct labor, and factory overhead budgets (similar to Self-Study Problem 1)

Wicker Works Inc.’s budgeted unit sales for the year 2013 were:

Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000

Chairs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000

The budgeted selling price for tables was $175 per table, and it was $75 per chair. The beginning finished goods inventories were expected to be 1,000 tables and 4,000 chairs, for a total cost of $240,000, with desired ending inventories at 1,500 and 6,000, respectively, with a total cost of $360,000. There was no anticipated beginning or ending work-in-process inventory for either item. The standard materials quantities for each item were as follows:

The purchase prices of rattan and binding cane were $5 and $3 per yard, respectively. The desired ending inventories for rattan and binding cane were 51,000 and 25,500 yards, respectively. The estimated beginning inventories for rattan and binding cane were 34,000 and 17,000 yards, respectively. The direct labor hours required for each type of item were as follows:

Required:

Prepare each of the following budgets for Wicker Works for the year ended 2013:

1. Sales budget.

2. Production budget.

3. Direct material budget.

4. Direct labor budget.

5. Factory overhead budget.

6. Cost of goods sold budget.

Reference: Self-Study Problem 1)

Sales, production, direct materials, direct labor, and factory overhead budgets

Kimo Tire Co.

Kimo Tire Co.’s budgeted unit sales for the year 2013 were:

Passenger-car tires . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000

Truck tires . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,500

The budgeted selling price for truck tires was $300 per tire and that for passenger-car tires was $90 per tire. The beginning finished goods inventories were expected to be 2,500 truck tires and 6,000 passenger tires, for a total cost of $400,510, with desired ending inventories at 2,000 and 5,000, respectively, and a total cost of $326,478. There was no anticipated beginning or ending work-in-process inventory for either type of tire.

The standard materials quantities for each type of tire were as follows:

The purchase prices of rubber and steel were $3 and $2 per pound, respectively. The desired ending inventories for rubber and steel were 60,000 and 6,000 lb, respectively. The estimated beginning inventories for rubber and steel were 75,000 and 7,500 lb, respectively. The direct labor hours required for each type of tire were as follows:

Required:

Prepare each of the following budgets for Kimo for the year ended 2013:

1. Sales budget

2. Production budget

3. Direct material budget

4. Direct labor budget

5. Factory overhead budget

6. Cost of goods sold budget