Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bonita Company is preparing its budgeted income statement for 2022. Relevant data pertaining to its sales, production, and direct materials budgets are as follows: Sales.

image text in transcribed
Bonita Company is preparing its budgeted income statement for 2022. Relevant data pertaining to its sales, production, and direct materials budgets are as follows: Sales. Sales for the year are expected to total 900.000 units. Quarterly sales are 21%,27%,23%, and 29%, respectively. The unit selling price is expected to be $38 for the first three quarters and $47 beginning in the fourth quarter, Sales in the first quarter of 2023 are expected to be 15% higher than the budgeted sales for the first quarter of 2022. Production. Management desires to maintain the ending finished goods inventories at 20% of the next quarter's budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $11 per pound. Management desires to maintain raw materials inventories at 108 of the next quarter's production requirements. Assume the production requirements for first quarter of 2023 are 405,000 pounds. Bonita budgets 0.4 hours of direct labor per unit, labor costs at $11 per hour, and manufacturing overhead at $17 per direct labor hour. Its budgeted selling and administrative expenses for 2022 are $5,400,000. (a) Calculate the budgeted total unit cost. (Round answer to 2 decimal places, e.g. 12.25.) Total unit cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions