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could you explain me how to get this problem right because i am not sure if i did it right. Sales revenue budget (units and
could you explain me how to get this problem right because i am not sure if i did it right.
Sales revenue budget (units and $)
Production budget in units
Direct materials usage budget and direct materials purchases budget (both budgets in units and $)
Direct manufacturing labour budget
Manufacturing overhead budget
Ending inventories budget (direct materials and finished goods)
Cost of goods sold budget
Premium wardrobes De Luxe wardrobes Direct manufacturing labour is 3 hours for the premium wardrobe and 5 hours for the De Luxe. The budgeted direct material usage for each product in 2018 is: Square metres premiu m deluxe 2 0 softwood 1 5 hardwood 4 1 1 4 mirrors Bassa wood Opening direct materials inventory for April 2018 is: Square metres premiu m deluxe 40 0 softwood 10 30 hardwood 100 5 4 40 mirrors Bassa wood Target ending direct materials inventory (April 30) is: Square metres premiu m deluxe 24 0 softwood 6 40 hardwood 80 4 4 44 mirrors Bassa wood Unit cost data is expected to be the same for April as it was in March for labour and all materials except Balsa wood where a change in supplier has resulted in a cost increase of 50%. Detailed cost data is as follows: Square metres March April Actual budgeted 160 160 softwood 125 125 hardwood 12 12 16 24 30 30 mirrors Bassa wood Manufacturin g labour cost/hour Manufacturing overhead (both variable and fixed) is allocated to each wardrobe on the basis of budgeted direct manufacturing labour hours. The budgeted variable manufacturing overhead rate for April 2018 is $35 per direct manufacturing labour hour. The budgeted fixed manufacturing overhead for the month is $42,500. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods on the basis of direct manufacturing labour-hours. Data relating to finished goods inventory for April 2017 are: Square metres premiu m deluxe Opening 20 inventory unit 5 Opening inventory $ 4850 10840 Target ending 30 inventory 15 Budgeted sales for April 2018 are 740 units of the premium and 390 units of the De Luxe. The budgeted selling prices per unit in April 2018 are $1,020 for the Premium and $1,600 for the De Luxe. Assume the following in your answer: Work-in-process inventories are negligible and ignored. Direct materials inventory and finished goods inventory are costed using the FIFO method. Unit costs of direct materials purchased and finished goods are constant in April 2018. REQUIRED: Prepare the following budgets for April 2018: Sales revenue budget (units and $) Production budget in units Direct materials usage budget and direct materials purchases budget (both budgets in units and $) Direct manufacturing labour budget Manufacturing overhead budget Ending inventories budget (direct materials and finished goods) Cost of goods sold budgetStep by Step Solution
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