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Posted on Jun 20, 2024

Develop the August production budget. Develop the August direct materials purchases budget Develop the August direct labor cost budget. Develop the August factory overhead cost

Develop the August production budget.

Develop the August direct materials purchases budget

Develop the August direct labor cost budget.

Develop the August factory overhead cost budget.

Create the August budgeted income statement.

The transactions and spreadsheets are given below along with additional data. Please help me make sure I am doing this correctly I have removed my data. May have to zoom in or click for a more clear visual image.

Quivers Inc. began operations on January 1 of the current year. The company produces eight-ounce bottles of jet wax called Ophelia Shine. The wax 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 Cream base Variable 100 oz $0.02 $2.00 Natural oils Variable 30 oz $0.30 $9.00 Bottle (8 oz) Variable 12 bottles $0.50 $6.00 Total $17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Direct Labor Cost per Case Mixing Variable 20 minutes $18.00 $6.00 Filling Variable 5 minutes $14.40 $1.20 Total 25 minutes $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $600 es/course-project#kl_panel_1_contentNatural oils Variable 30 oz $0.30 $9.00 Bottle (8 oz) Variable 12 bottles $0.50 $6.00 Total $17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Direct Labor Cost per Case Mixing Variable 20 minutes $18.00 $6.00 Filling Variable 5 minutes $14.40 $1.20 Total 25 minutes $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $600 Facility lease Fixed $14,000 Equipment depreciation Fixed $4300 Supplies Fixed $660 Total $19,560D9 X V A B C D E F G H I J K L M N O P Q R 1 REQUIREMENT #5: Develop the production budget. 2 3 Quivers Inc. A Production Budget 5 For the Month Ended August 31 6 Cases Expected cases to be sold Plus desired ending inventory Total units required Less estimated beginning 10 inventory Total units to be 11 produced 12 13 14 15 16 17 18 19 20 21 . .. Transactions 1 - High-Low Method 2 - Contribution Margin 3 - Fixed Costs 4 - Break-even Analysis 5 - Production Budget 6 - Direct Materials Purchases 7 . . . (+)Requirement #6: Develop the direct materials purchases budget. 2 Quivers Inc. Direct Materials Purchases Budget For the Month Ended August 31 Cream Natural Bottles Base (oz.) Oils (bottles) Total Units required for production Raw Materials Plus desired ending inventory Units x Volume = Total 10 Total units required Cream Base Less estimated beginning 11 inventory Natural Oils Total materials to be 12 purchased Bottles 13 * Unit price Total direct materials to be 14 purchased 15 16 17 18 19 20 21 22 23 .. . Transactions 1 - High-Low Method 2 - Contribution Margin 3 - Fixed Costs 4 - Break-even Analysis 5 - Production Budget 6 - Direct Materials Purchases 7 - ... (+120 X V A B C D E F G H J K L M N O 1 Requirement #7: Develop the direct labor cost budget. W N Quivers Inc. Direct Labor Cost Budget 6 For the Month Ended August 31 Labor 7 8 Mixing Filling Total Units x Production Time Hour = Total Mixing Hours required for 9 production of: Filling 10 Ophelia Wax Product 11 x Hourly rate 12 Total direct labor cost 13 14 15 16 17 18 19 20 21 22 23 24 25 26 2 - Contribution Margin 3 - Fixed Costs 4 - Break-even Analysis 5 - Production Budget 6 - Direct Materials Purchases 7 - Direct Labor Cost 8 - Factory Overhead (+)1 Requirement #8: Develop the factory overhead cost budget. W N Quivers Inc. Factory Overhead Cost Budget 6 For the Month Ended August 31 Cost Fixed Variable Total Cases Cost Total Fixed Cost [ from Question 3] Utilities Variable Utility Cost 10 Facility Lease 11 Equipment Depreciation 12 Supplies 13 Total factory overhead cost 14 15 16 17 18 19 20 21 22 23 24 25 26 . . . 3 - Fixed Costs 4 - Break-even Analysis 5 - Production Budget 6 - Direct Materials Purchases 7 - Direct Labor Cost 8 - Factory Overhead Cost 9 - Budgeted Incon +Quivers Inc. Budgeted Income Statement Units x Price = Tota For the Month Ended August 31 Sales Sales Selling Expenses LO CO Finished goods inventory, August 1 Direct materials: 10 Direct materials inventory, August 1 Direct materials purchases [from Question 11 6] 12 Cost of direct materials available for use 13 Less direct materials inventory, August 31 Cream Base (oz.) Oils (oz.) Bottels ( Cost of direct materials placed in 14 production Direct materials inventory, August 1 15 Direct labor [from Question 7] Direct materials inventory, August 31 16 Factory overhead [from Question 8] 17 Cost of goods manufactured Rate 18 Cost of finished goods available for sale Cream Base (oz.) 19 Less finished goods inventory, August 31 Oils (oz.) 20 Cost of goods sold Bottels (oz.) 21 Gross profit 22 Selling expenses 23 Income from operations 24 25 .. . 4 - Break-even Analysis 5 - Production Budget 6 - Direct Materials Purchases 7 - Direct Labor Cost 8 - Factory Overhead Cost 9 - Budgeted Income Statement + Ready + 100Part B. Budgets equired During July of the current year , the management of Quivers Inc. asked the controller, d , is a Robin, to prepare August manufacturing and income statement budgets. Demand was of expected to be 1,500 cases of jet wax at $100 per case for August. Inventory planning - 1 - II . .. 2 Finished Goods Inventory Cases Cost Estimated finished goods inventory, Aug 300 # # # # # Desired finished goods inventory, August 175 $7,000.00 Materials Inventory 10 11 Cream Base (oz.) Oils (oz.) Bottels (oz.) 12 Estimated materials inventory, August 1 250 290 600 13 low Desired materials inventory, August 31 1,000 360 240 14 15 juestion (1). 16 There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there was no change in the cost 17 18 per unit or estimated units per case operatina data from January. Transactions 1 - High-Low Method 2 - Contribution Margin 3 - Fixed Costs 4 - Break-even Analysis 5 - Production Budget 6 - Direct Materials Purchases 7 - ... + : 60Cases Cost Estimated finished goods inventory, Aug 300 # # # # # Desired finished goods inventory, Augus 175 $7,000.00 Materials Inventory 10 11 Cream Base (oz.) Oils (oz.) Bottels (oz.) 12 Estimated materials inventory, August 1 250 290 600 13 low Desired materials inventory, August 31 1,000 360 240 14 15 juestion (1). 16 There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there was no change in the cost 17 18 per unit or estimated units ber case operatina data from January. 19 Instructions 20 21 5.Prepare the August production budget. 22 6.Prepare the August direct materials purchases budget. 23 7.Prepare the August direct labor cost budget. Round the hours required for production to the nearest hour. 24 8.Prepare the August factory overhead cost budget. 25 9.Prepare the August budgeted income statement, including selling expenses. 26 udget irect Purchases (+)