Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Group 1-Rob's Shoes Rob's shoes is a small social entreprencurship company famous for its shoes, also known as Robs, and its mission to give back.

image text in transcribed
image text in transcribed
image text in transcribed
Group 1-Rob's Shoes Rob's shoes is a small social entreprencurship company famous for its shoes, also known as "Robs," and its mission to give back. For every pair of Robs purchased, Rob's Shoes sends a pair of Robs to a child in need. Each pair of Robs sells for $50. Rob's Shoes' balance sheet for December 31,2022 follows: Other data for Rob's Shoes: - Each pair of Robs is $50 - Projects to sell 500 pairs of shoes in the first quarter of 2023 , with sales increasing by 100 pairs of Robs each quarter - Finished Goods inventory on December 31,2022 , consists of 275 pairs of shoes at $20 each - Desired Ending Finished Goods Inventory is equal to 10% of the next quarter's sales, FIFO inventory method is used - The company expects to sell 900 pairs of Robs in the first quarter of 2024 - Direct Materials cost is $10 per pair of Robs - Rob's Shoes desires for each quarter's ending balance in Direct Materials to be 30% of the next quarter's production needs. The desired ending direct materials balance for the 4t quarter is \$2730. (Indirect materials are insignificant and not considered for budgeting purposes). - Each pair of Robs requires 2 hours of direct labor; direct labor costs average $10 per hour - Variable Manufacturing overhead rate is $3 per pair of Robs - Fixed manufacturing overhead consists of $1200 per quarter for depreciation and $500 per quarter for utilities, insurance, property taxes - Rob's Shoes uses direct labor hours (DUHr) as the allocation base to allocate overhead costs - Selling and administrative expenses include: RentExpense,fixedInsuranceExpense,fixedDepreciationExpense,fixedSuppliesExpense,variableSalariesExpense,fixed$1,200perquarter$100perquarter$70perquarter1%ofSalesRevenueperquarter$1,500perquarter Requirements 1. Using the provided Excel template prepare the following; a. Rob's Shoes 2023 operating budget - Sales budget - Production Budget - Direct materials budget, direct labor budget, and manufacturing overhead budget - Total projected Manufacturing cost - Cost of goods sold budget - Selling and administrative expense budget b. Rob's shoes 2023 Budgeted income Statement

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Auditing Standards For Islamic Financial Institutions

Authors: Mohd MaSum Billah

1st Edition

103206353X, 978-1032063539

More Books

Students also viewed these Accounting questions