Question
Bonita Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for
Bonita Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022.
January | February | March | April | May | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Estimated unit sales | 13,920 | 16,240 | 15,080 | 12,760 | 12,760 | |||||
Unit selling price | $50 | $47.5 | $47.5 | $47.5 | $47.5 | |||||
Direct labor hours per unit | 2.0 | 2.0 | 1.5 | 1.5 | 1.5 | |||||
Direct labor cost per hour | $8.0 | $8.0 | $8.0 | $9.0 | $9.0 |
Bonita has a labor contract that calls for a wage increase to $9.0 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1.
Bonita expects to begin the year with 20,416 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month’s sales, plus 40% of the second following month’s sales.
(a)
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Your answer is partially correct.
Prepare a production budget for Bonita Company by month and for the first quarter of the year.
BONITA COMPANY | ||||||||
---|---|---|---|---|---|---|---|---|
Jan | Feb | Mar | Total | |||||
select an opening production budget item Beginning InventoryRequired Production UnitsDirect Materials Per UnitSales in UnitsDesired Ending Direct MaterialsTotal Required UnitsDirect Materials PurchasesTotal Materials RequiredDesired Ending InventoryBeginning Direct Materials | enter a number of units | enter a number of units | enter a number of units | enter a number of units | ||||
select between addition and deduction AddLess: select a production budget item Total Required UnitsDirect Materials Per UnitTotal Materials RequiredSales in UnitsDesired Ending Direct MaterialsDirect Materials PurchasesBeginning Direct MaterialsDesired Ending InventoryBeginning InventoryRequired Production Units | enter a number of units | enter a number of units | enter a number of units | enter a number of units | ||||
select a summarizing line for the first part Total Required UnitsDesired Ending InventoryDesired Ending Direct MaterialsBeginning InventoryBeginning Direct MaterialsDirect Materials PurchasesRequired Production UnitsSales in UnitsDirect Materials Per UnitTotal Materials Required | enter a total number of units for the first part | enter a total number of units for the first part | enter a total number of units for the first part | enter a total number of units for the first part | ||||
select between addition and deduction AddLess: select a production budget item Total Materials RequiredDesired Ending Direct MaterialsDesired Ending InventorySales in UnitsTotal Required UnitsRequired Production UnitsBeginning Direct MaterialsDirect Materials PurchasesBeginning InventoryDirect Materials Per Unit | enter a number of units | enter a number of units | enter a number of units | enter a number of units | ||||
Total Required Units Sales in UnitsDesired Ending Direct MaterialsRequired Production UnitsBeginning InventoryDirect Materials Per UnitDesired Ending InventoryBeginning Direct MaterialsTotal Required UnitsDirect Materials PurchasesTotal Materials Required | enter a total number of units | enter a total number of units | enter a total number of units | enter a total number of units |
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