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A E 3 4 5 6 7 8 9 B D Budget Assumptions For the months of January, February, and March January February Selling price per unit $200 $200 Budgeted sales (units) 12,000 15,000 Budgeted sales (units) April Budgeted production (units) April Ratio of ending finished goods inventory to next month's sales Ratio of ending raw materials inventory to next month's requirements Number of units in finished goods inventory, January 1 Number of pounds in raw materials inventory, January 1 Number of pounds of raw materials required per unit Cost per pound of raw materials Number of direct labor hours required per unit Rate per direct labor hour March $200 19,000 20,000 21,000 20% 40% 2,400 6,048 1.20 $6.00 2.0 $18.00 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Production Budget For the months of January, February, and March January February Next month's budgeted sales (units) 15,000 19,000 Ratio of inventory to future month's sales 20% 20% Budgeted ending inventory (units) 3,000 3,800 Add: Budgeted sales (units) 12,000 15,000 Required units of available production 15,000 18,800 Deduct: Beginning inventory (units) 2,400 3,000 Budgeted units to produce 12,600 15,800 March 20,000 20% 4,000 19,000 23,000 3,800 19,200 Applying Excel 14: Budgeted units to produce Which of the following formulas would be correct in cell D28? Multiple Choice (0 =+D22*D23+D24+D25-D27 =+$E$7*($F$10+$D$7)-F12 =+E7*(F10+D7)-F12 =(+E7*F10)+(D7-F12) F 3 4 5 6 7 8 9 10 11 B Budget Assumptions For the months of January, February, and March January February Selling price per unit $200 $200 Budgeted sales (units) 12,000 15,000 Budgeted sales (units) April Budgeted production (units) April Ratio of ending finished goods inventory to next month's sales Ratio of ending raw materials inventory to next month's requirements Number of units in finished goods inventory, January 1 Number of pounds in raw materials inventory, January 1 Number of pounds of raw materials required per unit Cost per pound of raw materials Number of direct labor hours required per unit Rate per direct labor hour Direct Labor Budget For the months of January, February, and March January February Budgeted units to produce 12,600 15,800 Direct labor requirements (hours) per unit 2.00 2.00 Total direct labor hours needed 25,200 31,600 March $200 19,000 20,000 21,000 20% 40% 2,400 6,048 1.20 $6.00 2.0 $18.00 12 13 14 15 16 17 18 19 20 21 22 23 March 19,200 2.00 38,400 24 25 Direct labor rate (per hour) Total budgeted direct labor cost $18.00 $453,600 $18.00 $568,800 $18.00 $691,200 26 27 Applying Excel 14: Budgeted direct labor cost Which of the following formulas in cell D26 would yield the correct answer when copied to cells E26 and F26? Multiple Choice =+$D$21*D22*D25 =+E21*D22*D25 (0) =+D21*D22*D25 =+$D$23*D25
