Calculator Use the Dynamic Exhibit to answer the following questions. the direct labor cost the direct labor cost 1. When the number of wallets to be sold is 528,000 and the number of handbags to be sold is 280,000, the direct materials to be purchased is budget is and the cost of goods sold budget is $ . 2. When the number of wallets to be sold is 700,000 and the number of handbags to be sold is 106, 000, the direct materials to be purchased is budget is and the cost of goods sold budget is $ 3. When the number of wallets to be sold is 280,000 and the number of handbags to be sold is 528,000, the direct materials to be purchased is budget is $ and the cost of goods sold budget is $ the direct labor cost 4. Why is the budget for direct materials to be purchased different than the cost of direct materials put into production? a. The cost of materials placed into production is always more than the materials to be purchased b. The cost of materials placed into production is always less than the materials to be purchased c. The cost of leather is more than the cost of lining d. There is beginning inventory and desired ending Inventory in the problem Move the slider to change the values. Expected wallet units to be sold 280,000 404,000 528,000 700,000 Click on to view the information Expected handbag units to be sold 528,000 404,000 280,000 108,000 View Analysis Cutting Sewing Hours required for production Wallet 52,000 43.800 11000004 116,800 Handbag 95,800 206.200 Hourly rate Total direct labor cost $ 15.00 $1,702,000 $1,149,600 $ 1.095,600 $ 214,400 Elite Accessories Cost of Goods Sold Budget For the Year Ending December 31, 20 Fished goods inventory, anuary 1, 20 Work in process inventory, January 1, 20 Direct materials Direct materials inventory Lanuary 1, 20- 5 99,000 Direct materials purchases 2,587,500 Cost of direct materials available for use $2,686,500 Less direct materials investory, December 31, 20- 104.400 Cost of direct materials placed into production $2,582,100 Move the slider to change the values. Expected wallet units to be sold 280,000 404,000 528,000 700,000 Click on to view the information. Expected handbag units to be sold 528,000 404,000 280,000 108,000 $ 1.095,600 $ 214,400 View Analysis For the Year Ending December 31, 20-- Finished goods inventory, January 1, 20- Work in process inventory, January 1, 20-- Direct materials: Direct materials inventory, January 1, 20- $ 99,000 Direct materials purchases 2,587,500 Cost of direct materials available for use $2,686,500 Less direct materials inventory, December 31, 20 104,400 Cost of direct materials placed into production $2,582,100 Direct labor 4,851,600 Factory overhead 2,089,080 Total manufacturing costs Total work in process during the period Less work in process inventory, December 31, 20- Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, December 31, 20- Cost of goods sold 9,522,780 $9,737,180 220,000 9,517,180 $10.612.780 1,565.000 $ 9,047,780 (6) Direct materials purchases budget (c) Direct labor cost budget and (d) Cost of goods sold budget. Move the slider to change the values. Expected wallet units to be sold 280,000 44.000 $28,000 700,000 Click on to view the Information. Expected handbag units to be sold $28,000 404,000 280,000 108,000 The production budget estimates the number of units to be manufactured to meet budgeted sales and desired inventory levels in this scenario 520,000 wallets will be produced (528,000 80,000 - 88,000) and the 292,000 handbags will be produced (280,000 60,000 -18,000). Close Elite Accessories Production Budget For the Year Ending December 31, 20-- Units Wallet S2000 Expected units to be sold Plus desired ending inventory, December 31, 20.. R000 Total Less estimated beginning inventory lanuary 1, 20 Total units to be produced Elite Accessories Direct Materials Purchases Budget For the Year Ending December 31, 20- Direct Material Leather Calculator Use the Dynamic Exhibit to answer the following questions. the direct labor cost the direct labor cost 1. When the number of wallets to be sold is 528,000 and the number of handbags to be sold is 280,000, the direct materials to be purchased is budget is and the cost of goods sold budget is $ . 2. When the number of wallets to be sold is 700,000 and the number of handbags to be sold is 106, 000, the direct materials to be purchased is budget is and the cost of goods sold budget is $ 3. When the number of wallets to be sold is 280,000 and the number of handbags to be sold is 528,000, the direct materials to be purchased is budget is $ and the cost of goods sold budget is $ the direct labor cost 4. Why is the budget for direct materials to be purchased different than the cost of direct materials put into production? a. The cost of materials placed into production is always more than the materials to be purchased b. The cost of materials placed into production is always less than the materials to be purchased c. The cost of leather is more than the cost of lining d. There is beginning inventory and desired ending Inventory in the problem Move the slider to change the values. Expected wallet units to be sold 280,000 404,000 528,000 700,000 Click on to view the information Expected handbag units to be sold 528,000 404,000 280,000 108,000 View Analysis Cutting Sewing Hours required for production Wallet 52,000 43.800 11000004 116,800 Handbag 95,800 206.200 Hourly rate Total direct labor cost $ 15.00 $1,702,000 $1,149,600 $ 1.095,600 $ 214,400 Elite Accessories Cost of Goods Sold Budget For the Year Ending December 31, 20 Fished goods inventory, anuary 1, 20 Work in process inventory, January 1, 20 Direct materials Direct materials inventory Lanuary 1, 20- 5 99,000 Direct materials purchases 2,587,500 Cost of direct materials available for use $2,686,500 Less direct materials investory, December 31, 20- 104.400 Cost of direct materials placed into production $2,582,100 Move the slider to change the values. Expected wallet units to be sold 280,000 404,000 528,000 700,000 Click on to view the information. Expected handbag units to be sold 528,000 404,000 280,000 108,000 $ 1.095,600 $ 214,400 View Analysis For the Year Ending December 31, 20-- Finished goods inventory, January 1, 20- Work in process inventory, January 1, 20-- Direct materials: Direct materials inventory, January 1, 20- $ 99,000 Direct materials purchases 2,587,500 Cost of direct materials available for use $2,686,500 Less direct materials inventory, December 31, 20 104,400 Cost of direct materials placed into production $2,582,100 Direct labor 4,851,600 Factory overhead 2,089,080 Total manufacturing costs Total work in process during the period Less work in process inventory, December 31, 20- Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, December 31, 20- Cost of goods sold 9,522,780 $9,737,180 220,000 9,517,180 $10.612.780 1,565.000 $ 9,047,780 (6) Direct materials purchases budget (c) Direct labor cost budget and (d) Cost of goods sold budget. Move the slider to change the values. Expected wallet units to be sold 280,000 44.000 $28,000 700,000 Click on to view the Information. Expected handbag units to be sold $28,000 404,000 280,000 108,000 The production budget estimates the number of units to be manufactured to meet budgeted sales and desired inventory levels in this scenario 520,000 wallets will be produced (528,000 80,000 - 88,000) and the 292,000 handbags will be produced (280,000 60,000 -18,000). Close Elite Accessories Production Budget For the Year Ending December 31, 20-- Units Wallet S2000 Expected units to be sold Plus desired ending inventory, December 31, 20.. R000 Total Less estimated beginning inventory lanuary 1, 20 Total units to be produced Elite Accessories Direct Materials Purchases Budget For the Year Ending December 31, 20- Direct Material Leather