How to solve step by step with excel equations.
problem 9-66 Operating Budget, Comprehensive Analysis OBJEC Allition Manufacturing produces a subassembly used in the peodaction of jet aifcraft engines: The ssembly is sold to cngine manufacturers and aircraft mainemance facilities. Projected sales in enits for the coming 5 months follow: The following data pertain to production policies and manufacturing ipecifications folknat by Allison Manufacturing: 2. Finished goods inventory on January 1 is 32,000 units, each costing \$166.06. The desined ending inventory for each month is 80% of the next monthi sales. b. The data on materials used are as follows: Inventory policy dictates that sutficiens muterials be on hand ar the end of themonth to produce 50% of the next monch's ptodection needs. This is cuctly the amount of material on hand on December 31 of the prior year c. The direct labor used per unic of outpur is 3 hours. The ancrage ditect labor cost per hour is $14.25. d. Overhead each month is cstimated using a ferwble boighet formals. (Nate Activity is measured in direct labor hours.) c. Monthly selling and administrative expenses are also cstimated using a Hextere bod geting formula. (Note: Acrivity is measured in units sold.) T. The unit selling price of the subassembly is $205. 8. All sales and purchases are for cash. The cash balance on January 1 equals $400,000. The firm requires a minimum ending balance of $50,000. If the firm develops a cash shortage (Continued) by the end of the month, sufficient cash is borrowed to cover the shortage. Any cash borrowed is repaid at the end of the quarter, as is the interest due (cash borrowed at the end of the quarter is repaid at the end of the following quarter). The interest rate is 12% per annum. No money is owed at the beginning of January. Required: 1. Prepare a monthly operating budget for the first quarter with the following schedules, (Note: Assume that there is no change in work-in-process inventories.) a. Sales budget b. Production budget c. Direct materials purchases budget d. Direct labor budget e. Overhead budget f. Selling and administrative expenses budget g. Ending finished goods inventory budget h. Cost of goods sold budget i. Budgeted income statement problem 9-66 Operating Budget, Comprehensive Analysis OBJEC Allition Manufacturing produces a subassembly used in the peodaction of jet aifcraft engines: The ssembly is sold to cngine manufacturers and aircraft mainemance facilities. Projected sales in enits for the coming 5 months follow: The following data pertain to production policies and manufacturing ipecifications folknat by Allison Manufacturing: 2. Finished goods inventory on January 1 is 32,000 units, each costing \$166.06. The desined ending inventory for each month is 80% of the next monthi sales. b. The data on materials used are as follows: Inventory policy dictates that sutficiens muterials be on hand ar the end of themonth to produce 50% of the next monch's ptodection needs. This is cuctly the amount of material on hand on December 31 of the prior year c. The direct labor used per unic of outpur is 3 hours. The ancrage ditect labor cost per hour is $14.25. d. Overhead each month is cstimated using a ferwble boighet formals. (Nate Activity is measured in direct labor hours.) c. Monthly selling and administrative expenses are also cstimated using a Hextere bod geting formula. (Note: Acrivity is measured in units sold.) T. The unit selling price of the subassembly is $205. 8. All sales and purchases are for cash. The cash balance on January 1 equals $400,000. The firm requires a minimum ending balance of $50,000. If the firm develops a cash shortage (Continued) by the end of the month, sufficient cash is borrowed to cover the shortage. Any cash borrowed is repaid at the end of the quarter, as is the interest due (cash borrowed at the end of the quarter is repaid at the end of the following quarter). The interest rate is 12% per annum. No money is owed at the beginning of January. Required: 1. Prepare a monthly operating budget for the first quarter with the following schedules, (Note: Assume that there is no change in work-in-process inventories.) a. Sales budget b. Production budget c. Direct materials purchases budget d. Direct labor budget e. Overhead budget f. Selling and administrative expenses budget g. Ending finished goods inventory budget h. Cost of goods sold budget i. Budgeted income statement
