Question
Ayayai Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product JB 50 Product
Ayayai Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below.
Product
JB 50
Product
JB 60
Sales budget:Anticipated volume in units 403,200 205,000Unit selling price$22$ 27 Production budget:Desired ending finished goods units 26,30016,000Beginning finished goods units 31,200 13,300 Direct materials budget:Direct materials per unit (pounds)22Desired ending direct materials pounds 33,30017,900Beginning direct materials pounds 43,500 13,100Cost per pound$2 $3 Direct labor budget:Direct labor time per unit 0.40.6Direct labor rate per hour$12$12 Budgeted income statement:Total unit cost$12$22
An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $662,000for product JB 50 and $362,000for product JB 60, and administrative expenses of $542,000for product JB 50 and $345,000for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.
(a)
Display the production budget for the year.
AYAYAIINC.
Production Budget
For the Year Ending December 31, 2017
December 31, 2017
For the Quarter Ending December 31, 2017
JB 50
JB 60
Direct Labor Cost per Hour
Total Required Units
Desired Ending Finished Goods Units
Expected Unit Sales
Beginning Direct Materials
Total Pounds Needed for Production
Direct Labor Time per Unit
Direct Materials Purchases
Direct Materials per Unit
Total Required Direct Labor Hours
Required Production Units
Cost per Pound
Total Direct Labor Cost
Beginning Finished Goods Units
Desired Ending Direct Materials
Total Cost of Direct Materials Purchases
Total Materials Required
Add
Less
:
Direct Materials Purchases
Expected Unit Sales
Required Production Units
Total Cost of Direct Materials Purchases
Direct Labor Time per Unit
Total Materials Required
Direct Labor Cost per Hour
Total Direct Labor Cost
Cost per Pound
Beginning Direct Materials
Total Pounds Needed for Production
Desired Ending Finished Goods Units
Total Required Direct Labor Hours
Total Required Units
Beginning Finished Goods Units
Desired Ending Direct Materials
Direct Materials per Unit
Expected Unit Sales
Total Required Direct Labor Hours
Direct Labor Time per Unit
Total Pounds Needed for Production
Required Production Units
Beginning Direct Materials
Cost per Pound
Desired Ending Finished Goods Units
Direct Materials per Unit
Direct Labor Cost per Hour
Beginning Finished Goods Units
Desired Ending Direct Materials
Total Required Units
Total Cost of Direct Materials Purchases
Total Direct Labor Cost
Total Materials Required
Direct Materials Purchases
Add
Less
:
Beginning Direct Materials
Direct Materials per Unit
Cost per Pound
Total Required Direct Labor Hours
Total Cost of Direct Materials Purchases
Direct Materials Purchases
Total Direct Labor Cost
Total Required Units
Total Materials Required
Beginning Finished Goods Units
Desired Ending Direct Materials
Desired Ending Finished Goods Units
Total Pounds Needed for Production
Direct Labor Cost per Hour
Direct Labor Time per Unit
Expected Unit Sales
Required Production Units
Total Pounds Needed for Production
Total Required Units
Desired Ending Finished Goods Units
Beginning Finished Goods Units
Total Direct Labor Cost
Beginning Direct Materials
Direct Materials per Unit
Required Production Units
Direct Labor Cost per Hour
Cost per Pound
Total Materials Required
Direct Labor Time per Unit
Direct Materials Purchases
Desired Ending Direct Materials
Total Cost of Direct Materials Purchases
Total Required Direct Labor Hours
Expected Unit Sales
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen and Peter Brewer
14th edition
978-007811100, 78111005, 978-0078111006
