Joshua Hill, Bates & Hill Fabricators’ production manager, has just completed the company’s production budget (see Exercise 5.11) and manufacturing overhead budget (see Exercise 5.19) for the first quarter. He also has received the direct materials  purchases budget (see Exercise 5.15) and direct labor budget (see Exercise 5.17).

Data From Exercise 5.11:

Joshua Hill, Bates & Hill Fabricators’ production manager, has just received the company’s sales budget for the first quarter. Company policy  requires an ending finished goods inventory each month that will meet 20% of the following month’s sales  volume. Joshua plans to have 3,200 finished bricks at a cost of $49,280 in inventory at the beginning of the  year.

Data From Exercise 5.19:

Joshua Hill, Bates & Hill Fabricators’  production manager, has just completed the company’s production budget and direct labor budget for the  first quarter. He has identified the following monthly expenses that will be  needed to support the company’s manufacturing process.

The company applies manufacturing overhead based on direct labor hours, and the current predetermined rates are $12.25 per direct labor hour for fixed manufacturing overhead and $1.75 per direct labor  hour for variable manufacturing overhead.

Data From Exercise 5.15:

Hates & Hill Fabricators' purchasing manager, has just received the company's prtaluction budget for the first quarter (see Exer-ise 5.11). Each brick requires 5 pounds of clay, and Marcy expects to pay $1.50 per pound of clay in the coming year. Company policy requires an ending direct materials inventory each month that will meet 10% of the following month's pnaduction needs. Marcy expects t o have 15,000 pounds of clay at a cost of $22,500 in inventory at the beginning of the year.

Data From Exercise 5.17:

Joshua Hill, Bates & Hill Fabricators’ production manager, has just completed the company’s production budget for the first quarter. Each brick requires 12 minutes to produce, and Joshua expects to pay workers $18 per direct labor hour in the  coming year.

Required

Prepare Bates & Hill’s ending inventory and cost of goods sold budget for the first quarter.

Transcribed Image Text:

Fixed Variable Overhead Overhead per month per DLH Depreciation Indirect materials $30,000 18,600 $1.20 Indirect labor 22,000 0.20 Utilities 18,000 0.15 Property taxes Maintenance 4,300 6,000 0.20