Chapter 9 Assignment i Saved Problem 9-14 Production and Direct Materials Purchases Budgets (LO2] Franklin Products Limited manufactures and distributes a number of products to retailers. One of these products, SuperStick, requires four kilograms of material D236 in the manufacture of each unit. The company is now planning raw materials needs for the third quarter-July, August, and September. Peak sales of SuperStick occur in the third quarter of each year. To keep production and shipments moving smoothly, the company has the following inventory requirements: points eBook a. The finished goods inventory on hand at the end of each month must be equal to 8,450 units plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 22,540 units. b. The raw materials inventory on hand at the end of each month must be equal to 40% of the following month's production needs for raw materials. The raw materials inventory on June 30 for material D236 is budgeted to be 130,800 kilograms. c. The company maintains no work in process inventories. Ask Print A sales budget for SuperStick for the last six months of the year follows: Budgeted Sales in Units July 60,900 August 75,450 September 105,900 October 53,450 November 30,450 December 15,180 Chapter 9 Assignment i Saved Required: 1. Prepare a production budget for SuperStick for July, August, September, and October. July August September October Budgeted sales (units) 10 points Total needs 0000 Required production 0 0 0 0 eBook Ask Print Chapter 9 Assignment i Saved 2. Not available in Connect. points 3. Prepare a direct materials purchases budget showing the quantity of material D236 to be purchased for July, August, and September and for the quarter in total. eBook July August September Third Quarter Ask Print Required production (units) Material D236 needed per unit (kgs.) Production needs (kgs.) Total Material D236 needs 0 0 0 Material D236 purchases (kgs.) 0 0 0 Chapter 9 Assignment i Saved Help Problem 9-16 Direct Labour and Manufacturing Overhead Budgets (LO2] The Bakery Department of Culbert Dessert Corporation has submitted the following forecast of fruit pies to be produced by quarter for the upcoming fiscal year. 10 points First Quarter 8,700 Second Quarter 11,700 Third Quarter 9,700 Fourth Quarter 13,700 Units to be produced eBook Ask Print Each unit requires 0.60 direct labour-hours, and direct labour-hour workers are paid $9.50 per hour. In addition, the variable manufacturing overhead rate is $1.00 per direct labour-hour. The fixed manufacturing overhead is $24,750 per quarter. The only non-cash element of manufacturing overhead is depreciation, which is $7,350 per quarter. Required: 1. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecast number of units produced. Culbert Dessert Corporation Direct Labour Budget Second Third Quarter Quarter Quarter First Fourth Quarter Year Units to be produced Direct labour time per unit (hours) Total direct labour-hours needed Direct labour cost per hour Total direct labour cost 10 points 2. Prepare the company's manufacturing overhead budget. As per Schedule 5, your manufacturing overhead budget should also include the budgeted cash disbursements for overhead. eBook Ask Print Culbert Dessert Corporation Manufacturing Overhead Budget First Second Quarter Quarter Third Quarter Fourth Quarter Year Budgeted direct labour-hours Variable overhead rate Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 Cash disbursements for manufacturing overhead $ 0 $ 0 $ 0 $ 0 $ 0