1. Shamokin Manufacturing produces two products, Big and Bigger. Shamokin expects to sell 10,000 units of product Bigger and to have an inventory of 2,000 units of Bigger on hand at the end of the period. Currently, Shamokin has 800 units of Bigger on hand. Bigger requires two labour operations, molding and polishing. Each unit of Bigger requires one hour of molding and two hours of polishing. The direct labour rate for molding is $20 per molding hour and the direct labour rate for polishing is $25 per polishing hour. The expected number of hours of direct labour for Bigger is

Select one:

a. 11,200 hours of molding; 22,400 hours of polishing.

b. 22,400 hours of molding; 11,200 hours of polishing.

c. 8,800 hours of molding; 17,600 hours of polishing.

d. 10,000 hours of molding; 20,000 hours of polishing.

e. 17,600 hours of molding; 8,800 hours of polishing.

2.

Daniel Inc. expects to sell 6,000 ceramic vases for $20 each in 2018. Direct materials costs are $2, direct manufacturing labour is $10, and manufacturing overhead is $3 per vase. Each vase requires 0.5 kilograms (kg) of material which is all added at the start of production. The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs; the units in beginning inventory are completed before new units are started. Each vase requires one hour of direct labour, and manufacturing overhead is allocated based on direct labour hours. The following inventory levels are expected to apply to 2018:

	Beginning inventory	Ending inventory
Direct materials	1,000 kg	800 kg
Work-in-process inventory	100 units	300 units
Finished goods inventory	400 units	500 units

a) On the 2018 budgeted income statement, what amount will be reported for gross margin?

Select one:

a. $122,000

b. $48,000

c. $30,000

d. $90,000

e. $120,000

b)

How many ceramic vases need to be produced in 2018?

Select one:

a. 5,900 vases

b. 6,000 vases

c. 6,300 vases

d. 6,100 vases

e. 7,000 vases

3.

Capable Inc. expects to sell 35,000 athletic uniforms for $80 each in 2019. Direct materials costs are $20, direct manufacturing labour is $8, and manufacturing overhead is $6 for each uniform. Each uniform requires 2.0 square metres (sq. m.) of material which is all added at the start of production. The following inventory levels are expected to apply to 2019:

	Beginning inventory	Ending inventory
Direct materials	14,000 units	11,000 units
Work-in-process inventory	0 units	0 units
Finished goods inventory	4,000 units	1,000 units

a) What is the amount budgeted for cost of goods manufactured in 2019?

Select one:

a. $1,292,000

b. $1,054,000

c. $1,088,000

d. $986,000

e. $1,020,000

b)

What is the amount budgeted for cost of goods sold in 2019?

Select one:

a. $980,000

b. $840,000

c. $1,020,000.

d. $1,190,000.

e. $1,156,000.

4. Tripp Company sells three products with the following seasonal sales pattern:

Products

Quarter X Y Z

1 40% 30% 10%

2 30% 20% 40%

3 20% 20% 40%

4 10% 30% 10%

The annual sales budget shows forecasts for the different products and their expected selling price per unit as follows:

Product Units Selling Price

X 40,000 $ 3

Y 100,000 $12

Z 50,000 $ 5

Required:

Prepare a revenue budget in dollars for each quarter. Present each quarter in a separate column and add a column to show total year sales.