Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CALCULATOR PRINTER VERSION 4 BACK NEXT Problem 13-2 Novak Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
CALCULATOR PRINTER VERSION 4 BACK NEXT Problem 13-2 Novak 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 60 402,800 $23 203,900 $28 27,800 34,900 19,000 13,600 3 Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost 2 32,100 43,000 $3 18,500 14,600 $3 0.4 512 0.6 $12 $14 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $661,000 for product JB 50 and $365,000 for product JB 60, and administrative expenses of $543,000 for product JB 50 and $342,000 for product 18 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. Hepare the sales budget for the year. NOVAK INC. Sales Budget JB 50 JB 60 Total Expected unit sales Unit selling price $ Total sales Prepare the production budget for the year. NOVAK INC Production Budget JB 50 JB 60 Prepare the production budget for the year. NOVAK INC. Production Budget JB 50 JB 60 > HRSCHEN PRINTER VERSION Prepare the direct materials budget for the year. NOVAK INC. Direct Materials Budget JB 50 JB 60 Total $ $ Prepare the direct labor budget for the year. (Round Direct labor time per unit answers to 1 decimal place, e.g. 52.7.) NOVAK INC. Direct Labor Budget JB 50 JB 60 Total ES k Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). NOVAK INC. Budgeted Income Statement JB 50 JB 60 Total >

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Portfolio Of Business And Management Audits

Authors: Baumhardt And Partner

1st Edition

3908131006, 978-3908131007

More Books

Students also viewed these Accounting questions

Question

Discuss communication challenges in a global environment.

Answered: 1 week ago