a. Sales for the final quarter of the prior year total 2,600 units. Expected sales (in units) for the current year are: 2,340 (Quarter 1), 1,560 (Quarter 2), 2,080 (Quarter 3), and 2,080 (Quarter 4). Sales for the first quarter of the following year total 3,120 units. The selling price is $590 per unit in the first three quarters of the year, and $620 per unit in the final quarter. b. Company policy calls for a given quarter's ending finished goods inventory to equal 50% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 1,170 units, which complies with the policy. The product's manufacturing cost is $175 per unit, including per unit costs of $96 for materials (8 lbs. at $12 per lb.). $60 for direct labor (3 hours $20 direct labor rate per hour), $15 for variable overhead, and $4 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $13,500; factory utilities, $16,900, and other factory overhead of $3,400, Sales Budget Production Budget Direct Mtls Budget Direct Lbr Factory OH Selling Exp Admin Exp Budget Budget Budget Budget Cost of Goods Sold Income Statement Requirement: Prepare the Sales Budget for Shaw Inc.. Sales for the final quarter of the prior year total 2,600 un sales in units) for the current year are: 2,340 (Quarter 1), 1,560 (Quarver 2), 2,080 (Quarter 3), and 2,080 (Qui Sales for the first quarter of the following year total 3,120 units. The selling price is $590 per unit in the first th of the year, and $620 per unit in the final quarter. Shaw Inc. Sales Budget 2018 First Qtr. Second Qtr. Third Qtr. Fourth Qtr. Total Budgeted sales (units) Total budgeted sales (dollars)
Sales Budget Production Budget Direct Mtis Budget Direct Lbr Factory OH Selling Exp Admin Exp Budget Budget Budget Budget Cost of Goods Sold Income Statement Requirement: Prepare the production budget for Shaw Inc.. Company policy calls for a given quarter's ending finished goods ir equal 50% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is which complies with the policy. Expected sales (in units) for the current year are: 2,340 (Quarter 1), 1,560 (Qua 2), 2,080 (Quarter 3), and 2,080 (Quarter 4). Sales for the first quarter of the following year total 3,120 units. Shaw Inc. Production Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qtr. Fourth Qtr. Total Ratio of inventory to future sales Budgeted ending inventory (units) Required units of available production Units to be produced
