Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Crane Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the data shown below. Product JB 50 Product
Crane Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 320,000 160,000 Unit selling price $30 $35 Production budget: Desired ending finished goods units 24,000 12,000 Beginning finished goods units 20,000 8,000 Direct materials budget: Direct materials per unit (pounds) 2 3 Desired ending direct materials pounds 24,000 8.000 Beginning direct materials pounds 32,000 12,000 Cost per pound $3 $4 Direct labor budget: Direct labor time per unit 0.4 0.6 Direct labor rate per hour $12 $12 Budgeted income statement: Total unit cost $13 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $448,000 for product 50 and $288,000 for product JB 60, and administrative expenses of $432,000 for product JB 50 and $272,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 20%. Prepare the production budget for the year. CRANE INC. Production Budget For the Year Ending December 31, 2022 JB 50 JB 60 Expected Unit Sales Add V: Less V
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started