Four Part Question - PART ONE AND TWO

PART THREE AND FOUR

1 All questions on this assignment pertain to SB Manufacturing (SBM). 2 SBM is a manufacturing company that makes two products, P1 and 3 P2. The objective of this assignment is to work through various 4 aspects of SBM's budget for 2020. 5 6 PART 1 7 8 DATA 9 2020 projected sales: Product Sales Price 10 11 P1 47,000 $64.00 12 P2 $77.00 82,000 13 14 2020 projected Finished Goods inventory balance (units) 1/1/20 10,000 12/31/20 Product 15 16 P1 12,000 17 P2 22,000 20,000 18 19 Calculate the following forecasts based upon the 20 above data 21 22 Forecast Revenues from Product 1 (P1) 23 24 Forecast Revenues from Product 2 (P2) 25 26 Forecast Total Revenues 27 28 How many units of P1 should SBM 29 manufacture in 2020? 30 31 How many units of P2 should SBM 32 manufacture in 2020? 33 34 PART 2 35 36 Assume all sales occur evenly during the year, i.e., each month represents 1/12th of 37 annual sales. All sales are made on account and the following additional information 38 pertaining to Accounts Receivable is used for budgeting purposes: 39 40 Sales by month in 2019 720,000 680,000 November Sales $ 41 December Sales $ 42 43 44 Accounts Receivable Collection Schedule as % of Sales In month of Sale 42% 45 35% In month following the Sale In the 2nd month following the Sale Expected Bad Debts 46 20% 3% 47 48 49 50 Complete the following Cash Collections Schedule on Sales for Q1 2020 51 Net Accounts Amount Collected in 52 Month of Sale February March Receivable January 53 November 54 December 55 January February March 56 57 58 Total Cash Colle cted 59 60 DATA 2020 Projected Production standards Beginning Balance Ending Balance Unit cost of input Units per P1 Units per P2 Direct labor hrs T1 $40.00 0.2 0 Direct labor hrs T2 $36,00 0 0.3 Machine hrs 0.01 0.025 $1.50 47,000 Lbs of Z1 3 4 42,000 Units of Z2 5 $2.00 60,000 66,000 $0.75 70,000 Feet of Z3 5 75,000 The production of P1 and P2 requires direct labor (2 types), machine hours and direct materials (3 types: Z1, Z2, and Z3). Input - output relations are given in the table above per unit of output. Input prices are per unit of input such as a pound, hour, foot, or unit Based on your answers provided in Part 1 determine the following amounts needed to satisfy production goals for 2020 The total number of T1 labor hours required The total number of T2 labor hours required The total number of machine hours required The total number of lbs. of input Z1 required The total number of units of input Z2 required The total number of feet of input Z3 required What is the budget for T1 direct labor (dollars)? What is the budget for T2 direct labor (dollars)? What is the total labor budget (dollars)? What is the purchases budget for Zi (dollars)? What is the purchases budget for Z2 (dollars)? What is the purchases budget for Z3 (dollars)? PART 4 Manufacturing Overhead is budgeted for the upcoming year as: These costs are divided into two cost pools for assignment to WIP based on the use of predetermined rates 1,605,000 Percent of Total Overhead Cost Driver Machinery and Facilities OH Machine Hrs Personnel and Scheduling OH Direct Labor Hrs 40% 60% The amount of budgeted MFG overhead assigned to machinery & facilities is? The amount of budgeted MFG overhead assigned to personnel & scheduling is? The predetermined OH rate for machinery & facilities is? The predetermined OH rate for personnel & scheduling is? The amount of machinery & facilites OH assigned to P1 is? The amount of personnel & scheduling OH assigned to P1 is