Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Coronado Furniture builds high-end hand-made dining tables. Attacus Simmons, the company's owner, has developed the following sales forecast for 2022 Forecasted sales (tables) 1st Quarter

image text in transcribed
image text in transcribed
image text in transcribed
Coronado Furniture builds high-end hand-made dining tables. Attacus Simmons, the company's owner, has developed the following sales forecast for 2022 Forecasted sales (tables) 1st Quarter 2,600 2nd Quarter 3,000 3rd Quarter 2,800 4th Quarter 1.900 Because of the time needed to create each table, Coronado maintains an ending Finished Goods Inventory of 20% of the following quarter's budgeted sales. Coronado has been following this inventory policy for several years. The company ended 2021 with 450 tables on hand. The standard cost card for a table is as follows: Standard Quantity Standard Price Total Standard Cost $80 32 American cherry wood American cherry turning square (legs) Direct labor Variable overhead Fixed overhead 20 board feet 4 squares 8 DLH 8 DLH 8 DLH $4/board foot $8/square $15/DLH $45/DLH $12/DLH 120 360 96 $688 Prepare Coronado's production budget for 2022. Assume that the desired ending inventory for 2022 is 500 tables. 1st Quarter Production Budget 2nd Quarter 3rd Quarter 3000 2800 Budgeted unit sales 2600 Budgeted ending Inventory 600 560 380 Total units required 3200 3560 3180 Beginning inventory 450 -600 -560 Budgeted Production 2750 2960 2620 e Textbook and Media Attempts: unlimited 22 SP w dtv A 2 Coronado maintains inventory of American cherry wood equal to 10% of the following quarter's production needs. On December 31, 2021. Coronado's physical inventory count showed 4,800 board feet of American cherry. Due to an anticipated price increase in 2023, managers want to have 5,000 board feet of American cherry wood in inventory on December 31, 2022. Prepare Coronado's 2022 direct materials purchases budget for American cherry wood. Direct Materials Purchases Budget 2nd Quarter 3rd Quarter 1st Quarter Budgeted production Standard board feet Production needs Budgeted ending inventory Total DM required Beginning inventory Budgeted purchase S $ $ Standard price per board foot $ $ Bodected purchases cost

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

Step: 3

blur-text-image

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

A Concise Course On Auditing An Authoritative Text For Stakeholders

Authors: Onyuka Felix McDubus

1st Edition

3844395415, 978-3844395419

More Books

Students also viewed these Accounting questions

Question

Identify four applications of HRM to healthcare organizations.

Answered: 1 week ago