Question
Bonzo's boards makes reasonably high=end skateboards which sell for $250 for each. The production process is fairly simple and involves assembling components purchased from various
Bonzo's boards makes reasonably high=end skateboards which sell for $250 for each. The production process is fairly simple and involves assembling components purchased from various suppliers. Since each skateboard only takes one hour to assembling components purchased from various suppliers. Since each skateboard only takes one hour to assemble, there is essentially no work-in-process inventory.
Bonzo's boards has the capacity to make 2000 skateboards per year.
Costs for the skateboard components are:
Deck $40
Truck $40
Wheels 45
Bearings 20
Bolts,etc 20
Hardware package-net 125
Total 165
Each board should take one hour of firect labor to assemble. Direct labor wages are $50 per hour
other costs on a monthly basis are:
Rent $1000
Insurance 150
Utilities 100
Miscellaneous 200
total 1450
Inventory balances are as follows ( Bonzo's uses FIFO inventory cost flow assumption)
Units Dollars
Decks 1/1/2016 305 $12,200
12/31/2016 350 Budgeted
Hardware Package 1/1/2016 265 $33,125
12/31/2016 300 Budgeted
Finished skateboards 1/1/2016 300 $63,000
12/31/2016 400 Budgeted
During 2016 Bonzo's boards expects to sell 1000 skateboards
what is the budgeted cost of Skateboard manufactured for 2016?
what is the budgeted cost of Decks purchased for 2016?
what is the budgeted cost of Hardware Packages purchased for 2016?
what id budgeted dollar value of ending Finished Skateboard inventory?
what id budgeted dollar value of ending Hardware inventory?
how much income does Bonzo's boards expect to make if they sell 1000 skateboards in 2016?
how much income does Bonzo's boards expect to make if they sell 800 skateboards in 2016?( production is adjusted appropriately)?
how much income does Bonzo's boards expect to make if they sell 1200 skateboards in 2016?( production is adjusted appropriately)?
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