Homework: Chapter $9$ Homework $($required$)$

Question $9,$ P$9-63$A $($similar to$)$

Part $1$ of $13$

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Dariey Manufacturing is preparing its master budget for the first quarter of the upcoming year. Th

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Question $1$

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a$.$ Actual sales in December were $$76,000.$ Selling price per unit is projected to remain stable at $$9$ per unit throughout the budget period. Saies for the first five months of the upcoming year are budgoted to be as follows:

$\backslash$table$[[$January $........,80,100],[$February dots...,$89,100],[$March $.........$ $$,82,800],[$April $.........$ $$,85,500],[$May$..........$ $$,77,400]]$

b$.$ Sales are $30\%$ cash and $70\%$ credit. All credit sales are collected in the month following the sale.

c$.$ Darley Manufacturing has a policy that states that each month's ending inventory of finished goods should be $10\%$ of the foliowing month's sales $($in units$).$

d$.$ Of each month's direct material purchases, $20\%$ are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Two pounds of direct material is needed per unit at $$1\mathrm{.}50$ per pound. Ending inventory of direct materials should be $20\%$ of next month's production needs.

e$.$ Most of the labor at the manufacturing facility is indirect, but there is some direct labor incurred. The direct labor hours per unit $0\mathrm{.}03.$ The direct labor rate per hour is $$13$ per hour All direct labor is paid for in the month in which the work is performed. The direct labor total cost for each of the upcoming three months is as follows:

$\backslash$table$[[$January $........$ $$,3,510],[$February $.......$ $$,3,834],[$March$.........$ $$,3,600]]$

f$.$ Monthly manufacturing overhead costs are $$6,500$ for factory rent, $$2,900$ for other fixed manufacturing expenses, and $$1,40p$ unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in wh they are incurred

g$.$ Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Darley Manufacturing