During July of the current year, the management of Genuine Spice Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected 1,500 cases $100 per case for August, Inventory planning Information is provided as follows: Finished Goods Inventory Estimated finished goods inventory, August 1 Desired finished goods inventory, August 31 Cases 300 175 Cost $12,000 7.000 Materials inventory Cream Base (oz.) 250 1,000 Oils (oz.) 290 360 Bottles (bottles) 600 240 Estimated materials inventory, August 1 Desired materials inventory, August 31 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 per un estimated units per case operating data from January Required-Part B: 5. Prepare the August production budget 6. Prepare the August direct materials purchases budget 7. Prepare the August direct labor cost budget. Round the hours required for production to the nearest hour 8. Prepare the August factory overhead cost budget. If an amount box does not require an entry leave it blank (Entries of zero (O) will be cleared automatically by CNOW.)" 9. Prepare the August budgeted income statement, including seling expenses. NOTE: Because you are not required to prepare a cost of goods sold budget the cost of goods sold calculations will be part of the budgeted income statement "Enter all amounts as positive numbers. Comprehensive Problem 5 Amount Descriptions Questions (Part A) Production Budget Instructions Genuine Spion in began operations on January 1 of the current year. The company produces eight-ounce bottles of hand and body lotion called Eternal Beauty. The losion is sold wholesale in 12 bottle cases for $100 percase. 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 Cost per Case Creambase Vibe 100 $0.02 $2.00 Natural Oils Variable 0.30 9.00 Bottle (802) Variable 12 bottles 0.50 6.00 $17.00 DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit 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 $17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Cost per Case Mixing Variable 20 min $18.00 $6.00 Filling Variable 14.40 1.20 25 min. $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $600 Facility lease Fixed 14,000 Equipment depreciation Fixed 4,300 Supplies Fixed 660 $19,560 During July of the current year, the management of Genuine Spice Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected 1,500 cases $100 per case for August, Inventory planning Information is provided as follows: Finished Goods Inventory Estimated finished goods inventory, August 1 Desired finished goods inventory, August 31 Cases 300 175 Cost $12,000 7.000 Materials inventory Cream Base (oz.) 250 1,000 Oils (oz.) 290 360 Bottles (bottles) 600 240 Estimated materials inventory, August 1 Desired materials inventory, August 31 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 per un estimated units per case operating data from January Required-Part B: 5. Prepare the August production budget 6. Prepare the August direct materials purchases budget 7. Prepare the August direct labor cost budget. Round the hours required for production to the nearest hour 8. Prepare the August factory overhead cost budget. If an amount box does not require an entry leave it blank (Entries of zero (O) will be cleared automatically by CNOW.)" 9. Prepare the August budgeted income statement, including seling expenses. NOTE: Because you are not required to prepare a cost of goods sold budget the cost of goods sold calculations will be part of the budgeted income statement "Enter all amounts as positive numbers. Comprehensive Problem 5 Amount Descriptions Questions (Part A) Production Budget Instructions Genuine Spion in began operations on January 1 of the current year. The company produces eight-ounce bottles of hand and body lotion called Eternal Beauty. The losion is sold wholesale in 12 bottle cases for $100 percase. 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 Cost per Case Creambase Vibe 100 $0.02 $2.00 Natural Oils Variable 0.30 9.00 Bottle (802) Variable 12 bottles 0.50 6.00 $17.00 DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit 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 $17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Cost per Case Mixing Variable 20 min $18.00 $6.00 Filling Variable 14.40 1.20 25 min. $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $600 Facility lease Fixed 14,000 Equipment depreciation Fixed 4,300 Supplies Fixed 660 $19,560