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 to be $1,500$ cases at $$100$ per case for August. Inventory planning information is provided as follows:

Finished Goods Inventory:

Line Item Description Cases Cost

Estimated finished goods inventory, August $1300$ $$12,000$

Desired finished goods inventory, August $311757,000$

Materials Inventory:

Line Item Description Cream Base

$($ozs$.)$ Oils

$($ozs$.)$ Bottles

$($bottles$)$

Estimated materials inventory, August $1250290600$

Desired materials inventory, August $311,000360240$

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 unit or estimated units per case operating data from January.

Required:

$5.$ Prepare the August production budget.

Genuine Spice Inc.

Production Budget

For the Month Ended August $31$

Line Item Description Cases

Expected cases to be sold

fill in the blank $2$

$1,500$

Desired ending inventory

fill in the blank $4$

$175$

Total units available

fill in the blank $6$

$1,675$

Estimated beginning inventory

fill in the blank $8$

$300$

Total units to be produced

fill in the blank $10$

$1,375$

$6.$ Prepare the August direct materials purchases budget. Enter the unit price to the nearest cent.

Genuine Spice Inc.

Direct Materials Purchases Budget

For the Month Ended August $31$

Line Item Description Cream Base $($ozs$.)$ Natural Oils $($ozs$.)$ Bottles $($bottles$)$ Total

Direct materials to be purchased

fill in the blank $12$

fill in the blank $13$

fill in the blank $14$

Desired ending inventory

fill in the blank $16$

$1,000$

fill in the blank $17$

$360$

fill in the blank $18$

$240$

Estimated beginning inventory

fill in the blank $20$

$250$

fill in the blank $21$

$290$

fill in the blank $22$

$600$

Units required for production

fill in the blank $24$

fill in the blank $25$

fill in the blank $26$

Unit price

$fill in the blank $28$

$0\mathrm{.}02$

$fill in the blank $29$

$0\mathrm{.}30$

$fill in the blank $30$

$0\mathrm{.}50$

Total direct materials to be purchased

$fill in the blank $32$

$fill in the blank $33$

$fill in the blank $34$

$fill in the blank $35$

$7.$ Prepare the August direct labor cost budget. For hours required, round to nearest whole hour. For hourly rate, enter to the nearest cent, if required.

Genuine Spice Inc.

Direct Labor Cost Budget

For the Month Ended August $31$

Line Item Description Mixing Filling Total

Hours required for production of:

Hourly rate

fill in the blank $37$

$658\mathrm{.}33$

fill in the blank $38$

$164\mathrm{.}58$

Hourly rate

$fill in the blank $40$

$18$

$fill in the blank $41$

$14\mathrm{.}40$

Total direct labor cost

$fill in the blank $43$

$11,849\mathrm{.}94$

$fill in the blank $44$

$2,370\mathrm{.}91$

$fill in the blank $45$

$14,220\mathrm{.}85$

$8.$ Prepare the August factory overhead cost budget. If an amount box does not require an entry, leave it blank.

Genuine Spice Inc.

Factory Overhead Cost Budget

For the Month Ended August $31$

Line Item Description Fixed Variable Total

Factory overhead:

$fill in the blank $47$

$fill in the blank $48$

$fill in the blank $49$

fill in the blank $51$

fill in the blank $52$

fill in the blank $53$

fill in the blank $55$

fill in the blank $56$

fill in the blank $57$

fill in the blank $59$

fill in the blank $60$

fill in the blank $61$

Total $fill in the blank $62$

$fill in the blank $63$

$fill in the blank $64$

$9.$ Prepare the August budgeted income statement, including selling expenses.

Genuine Spice Inc.

Budgeted Income Statement

For the Month Ended August $31$

Line Item Description Amount Amount Amount

Sales

$fill in the blank $66$

$fill in the blank $68$

$fill in the blank $70$

fill in the blank $72$

fill in the blank $74$

$fill in the blank $76$

fill in the blank $78$

fill in the blank $80$

fill in the blank $81$

fill in the blank $83$

fill in the blank $85$

$fill in the blank $87$

fill in the blank $89$

$fill in the blank $91$