Comprehensive Problems Part 1 Note: This section is a continuation from Part A or the comprehensive problem. Be sure you have completed Part A before attempting Port 8. You may have to refer back to data presented in Port A and use answers from Part A when completing this section, Genuine Spice Inc, began operations on January 1 of the current year. The company produces 8-ounce bottles of hand and body lotion called Eternal Beauty The lotion is sold wholesale in 12 bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Direct Materials Cost per Case Variable 100 025 $0.02 Cream base Natural oils $2.00 9.00 Variable 30 OZS 0.30 Variable Bottie (8-Oz.) 12 bottles 0.50 6.00 $17.00 DIRECT LABOR Labor Rate Cost Behavior Department Time per Case Direct Labor Cost per Case per Hour 20 min Variable $18.00 $6.00 Mixing 5 1.20 Variable Filling 14.40 25 min 57.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities $600 Mixed Fixed Facility lease Equipment depreciation Supplies Fixed 14,000 4,300 660 Fixed 519,560 Part B-August Budgets During July of the current year, the management of Genuine Spice Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases at $100 per case for August. Inventory planning information is provided as follows: Finished Goods inventory: Cases Cost 300 Estimated finished goods inventory, August 1 Desired finished goods inventory, August 31 $12,000 7,000 175 Materials Inventory: Oils Cream Base (ozs.) Bottles (bottles) (ozs.) Cream Base (ozs.) Oils (ozs.) Bottles (bottles) Estimated materials inventory, August 1 Desired materials inventory, August 31 250 290 600 1,000 360 240 There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there change in the cost per unit or estimated units per case operating data from January Required: 5. Prepare the August production budget. Genuine Spice Inc. Production Budget For the Month Ended August 31 Cases