3-a. Prepare the direct-material budget for paperboard.
3-b. Prepare the direct-material budget for corrugating medium.
FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements Type of Box Direct material required per 100 boxes: Paperboard ($0.32 per pound) Corrugating medium ($0.16 per pound) 50 pounds 40 pounds 90 pounds 50 pounds Direct labor required per 100 boxes ($16.00 per hour) 0.35 hour 0.70 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 440,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total $13,350 91,650 37,500 25,000 18,000 45,500 $231,000 The following selling and administrative expenses are anticipated for the next year Salaries and tringe benefits of sales personnel Advertising Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses Total $127, 500 27,500 145,000 44,000 7,000 $351,000 The sales forecast for the next year is as follows Sales Volume 445,000 boxes 445,000 boxes Sales Price Box type C Box type P $115.00 per hundred boxes 175.00 per hundred boxes The following inventory information is available for the next year. The unit production costs for each product are expected to be the same this year and next year Expected Inventory January 1 Desired Ending Inventory December 31 Finished goods: Box type C Box type P Raw material: Paperboard 20,000 boxes 30,000 boxes 15,000 boxes 25,000 boxes 13,000 pounds 4,000 pounds 3,000 pounds 9,000 pounds Corrugating medium Box type P Paperboard Corrugating medium 30,000 boxes 25,000 boxes Raw material: 13,000 pounds 4,000 pounds 3,000 pounds 9,000 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent. Required 1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.) Box C Box P Total Sales (in units) Sales price per unit Sales revenue Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent 2. Prepare the production budget for the next year. Box C Box P Sales Total units needed Production requirements Complete this question by entering your answers in the tabs below Req 3A Req 3B Prepare the direct-material budget for paperboard. Paperboard Box C Box P Total Production requirement (number of boxes) Raw material required per box (pounds) Raw material required for production (pounds) 0.500.90 3,000 Total raw-material needs Raw material to be purchased Price (per pound) Cost of purchases (paperboard) $ 0.32 Complete this question by entering your answers in the tabs below. Req 3A Req 3B Prepare the direct-material budget for corrugating medium Corrugating Medium Box C Box P Total Production requirements (number of boxes) Raw material required per box (pounds) Raw material required for production (pounds) 0.40 0.50 9,000 Total raw-material needs Raw material to be purchased Price (per pound) Cost of purchases (corrugating medium) S 0.16 Paperboard Corrugating medium 13,000 pounds 4,000 pounds 3,000 pounds 9,000 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent. 4. Prepare the direct-labor budget for the next year. (Do not round intermediate calculations. Round "Direct labor required per box (hours)" to 4 decimal places.) Box C Box P Total Production requirements (number of boxes) Direct labor required per box (hours) Direct labor required for production (hours) Direct-labor rate Total direct-labor cost
