Bay Company makes two Planters, the Balcony and the Poolside. They are both made of Resin and metal, but the Balcony is smaller. Information for the two products for the month of June is given in the following tables. 1 2 3 Input Prices Direct materials Resin Metal Direct manufacturing labor $5 per pound $4 per pound $12 per direct manufacturing labor hour 14 15 16 Balcony Poolside 17 18 Inputs quantities per unit of output Direct materials Resin Metal Direct manufacturing labor-hours (DMLH) Machine hours (MH) 19 20 3 pounds 1 pounds 2 hours 4 MH 5 pounds 2 pounds 3 hours 6 MH 21 22 23 24 Inventory information, direct materials Beginning inventory Target ending inventory Cost of beginning inventory 25 Resin 240 pounds 280 pounds $1,200 Metal 50 pounds 50 pounds $180 26 27 2B Bay accounts for direct material using a FIFO cost flow assumption 29 Bay accounts for direct material using a FIFO cost flow assumption. Poolside B Sales and inventory information, finished goods Balcony Expected sales in units 3800 Selling price $110 Target ending inventory in units 120 Beginning inventory in units 150 Beginning inventory in dollars $13,000 2200 $155 80 5 75 6 $10,000 7 8 Bay uses a FIFO cost for assumption for finished goods inventory 9 0 11 22 Bay uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing and Inspection. Activity rates for these activities are as follows: $65 per set up hour $12 per machine hour $18 per inspection hour 13 44 Other information follows: 45 46 47 48 Cost driver information Balcony Poolside 49 50 51 Number of units per batch Setup time per batch Inspection time per batch 50 1 hours 0.5 hour 80 1.25 hours 0.6 hour 52 53 54 55 Nonmanufacturing fixed costs for May equal $53,000 of which hall are salaries. Salaries are expected to increase by 4% in June. The only variable nonmanufacturing cost is sales commission, which is 4% of sales revenue. Income tas rate is 20% 56 57 58 Prepare the following for the June production planning meeting: 59 60 1- Revenue Budget 61 62 2 - Production budget in units 63 54 3- Direct material usage budget and direct material purchases budget 65 66 Direct manufacturing labor cost budget 67 68 5- Manufacturing overhead cost budget for each of the three activities 69 6- 70 71 Budgeted unit cost of ending finished goods inventory and ending inventories budget 7- Cost of goods sold budget 72 73 74 00 Nonmanufacturing costs budget 75 9- 76 77 Budgeted income statement (income tax rate 20%) 78 Data Sheet Template Type here to search Bay Company makes two Planters, the Balcony and the Poolside. They are both made of Resin and metal, but the Balcony is smaller. Information for the two products for the month of June is given in the following tables. 1 2 3 Input Prices Direct materials Resin Metal Direct manufacturing labor $5 per pound $4 per pound $12 per direct manufacturing labor hour 14 15 16 Balcony Poolside 17 18 Inputs quantities per unit of output Direct materials Resin Metal Direct manufacturing labor-hours (DMLH) Machine hours (MH) 19 20 3 pounds 1 pounds 2 hours 4 MH 5 pounds 2 pounds 3 hours 6 MH 21 22 23 24 Inventory information, direct materials Beginning inventory Target ending inventory Cost of beginning inventory 25 Resin 240 pounds 280 pounds $1,200 Metal 50 pounds 50 pounds $180 26 27 2B Bay accounts for direct material using a FIFO cost flow assumption 29 Bay accounts for direct material using a FIFO cost flow assumption. Poolside B Sales and inventory information, finished goods Balcony Expected sales in units 3800 Selling price $110 Target ending inventory in units 120 Beginning inventory in units 150 Beginning inventory in dollars $13,000 2200 $155 80 5 75 6 $10,000 7 8 Bay uses a FIFO cost for assumption for finished goods inventory 9 0 11 22 Bay uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing and Inspection. Activity rates for these activities are as follows: $65 per set up hour $12 per machine hour $18 per inspection hour 13 44 Other information follows: 45 46 47 48 Cost driver information Balcony Poolside 49 50 51 Number of units per batch Setup time per batch Inspection time per batch 50 1 hours 0.5 hour 80 1.25 hours 0.6 hour 52 53 54 55 Nonmanufacturing fixed costs for May equal $53,000 of which hall are salaries. Salaries are expected to increase by 4% in June. The only variable nonmanufacturing cost is sales commission, which is 4% of sales revenue. Income tas rate is 20% 56 57 58 Prepare the following for the June production planning meeting: 59 60 1- Revenue Budget 61 62 2 - Production budget in units 63 54 3- Direct material usage budget and direct material purchases budget 65 66 Direct manufacturing labor cost budget 67 68 5- Manufacturing overhead cost budget for each of the three activities 69 6- 70 71 Budgeted unit cost of ending finished goods inventory and ending inventories budget 7- Cost of goods sold budget 72 73 74 00 Nonmanufacturing costs budget 75 9- 76 77 Budgeted income statement (income tax rate 20%) 78 Data Sheet Template Type here to search