Comprehensive Problems Part 1 Notel The section is a contration from Part 1 of the comprehensive problem. Be sure you have completed Port A before attempting Port B. You may have to refer back to toto presented in Port A and use answers from Porta when completing this section Ganuna Spice one began operations on January of the current wear. The company produces algunce buttes hand and body fation called anavauty. The con la sud de 12 bottle cases for $100 percase There is a wing communion of s20 per case. The January direct materia, drear, and factory overhead costs are as follows Cost Behavior Variable Vara DIRECT MATERIALS Units Cost per Case per Unit 100 50.02 30 12 bottle 0.50 Cream Natural Buttle (2) Direct Materiais Cost per Case 12.00 9.00 6.00 $17.00 Department DIRECT LABOR Time per Case 20 mit Labor Rate per Hour Cost Behavior Variable Variable Direct Labor Cost per Case Mixing $1.00 ang 5 1440 130 25 m 17.30 FACTORY OVERHEAD Cost Behavior Total Cost Med 5000 Facility lease hed 14.000 lopment depreciation hed 4.300 Supplies 660 $19,560 Part -August Budgets Ouning shy of the current year, the management of Genuine Sekcie 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 Nugust Inventory planning stormation is provided as follows: Finished Goods Inventory Care Cost 300 $12,000 Estimated the good inventory, August 1 Desired had god inwentary, August 31 195 7,000 Material inventory Materials Bory Cream Base Cons.) 250 1.000 (n.) 200 Bottes (bottle) 600 240 Estimates with Osrede inventory, August There was net wortor med for the bug word of them, sed. In there was carries per treated units percepering daarom Required 9. Prepare the August budgeted income statement, including seling expenses. Enter all amounts as positive numbers. Genuine Spice Inc. Budgeted Income Statement For the Month Ended August 31 Sales Finished goods inventory, August 1 Direct Materials: Direct materials inventory, August 1 Direct materials purchases Cost of direct materials available for use Less direct materials inventory, August 31 Cost of direct materials placed in production Direct labor Factory overhead Cost of goods manufactured Cost of finished goods available for sale Cost of finished goods available for sale Less finished goods inventory, August 31 Cost of goods sold Gross profit Selling expenses Income before income tax
