In Handout 8-4, Strong's budgeted unit sales price is a $50 b. $75 c. $1,000 d. $100 QUESTION 7 ction In Handout 8-4, what is Strong's Quarter 3 a. 4,100 b. 800 c. 3,100 Od 2,100 QUESTION 8 In Handout 8-4, what is Strong's Quarter 1 total direct labor cost a. $4,100 b. $800 c. $3,100 d. $2,100 Handout 8-4 (LO3) 1. Complete the sales budget of Strong, Inc. for this coming year (LO 5a). Budgeted unit sales Budgeted sales price Budgeted sales revenue Quarter 1 1,000 $100 Quarter 2 2,000 $100 Quarter 3 3,000 $100 Quarter 4 4,000 $100 Year 10,000 $100 2. Complete the production budget of Strong, Inc. for this coming year (LO 5b). Quarter 1 1,000 Quarter 2 2,000 Quarter 3 3,000 Quarter 4 4,000 Year 10,000 Budgeted unit sales Budgeted ending inventory (10% of current period budgeted sales) Budgeted beginning inventory Budgeted production 300 3. Complete the direct materials purchases budget of Strong, Inc. for this coming year (LO 5c). Quarter 1 800 Quarter 2 2,100 Quarter 3 3,100 Quarter 4 4,100 Year 10,100 Budgeted production Materials requirement 1 ounce per unit Total materials needed for production Planned ending direct materials inventory (10% of current quarter's production needs) Planned beginning direct materials inventory Total purchases of direct materials Average cost of direct materials per ounce ($10) Total cost of purchases of direct materials 80 4. Complete the direct labor budget of Strong, Inc. for this coming year (LO 5d). Quarter 1 800 Quarter 2 2,100 Quarter 3 3,100 Quarter 4 4,100 Year 10,100 Budgeted production Direct labor requirement (0.1 hour per unit) Total direct labor hours needed for production Direct labor cost per hour ($10 per hour) Total direct labor cost 5. Complete the budgeted manufacturing overhead cost budget of Strong, Inc. for this coming year (LO Se). Quarter 1 800 Quarter 2 2.100 Quarter 3 3,100 Quarter 4 4,100 Year 10.100 Budgeted production Variable overhead rate (S2 per unit produced) Total variable manufacturing overhead Fixed manufacturing overhead Total budgeted manufacturing overhead cost $5,000 $5,000 $5,000 $5,000 $20.000 6. Given the budgeted manufacturing cost per unit, compute the cost of goods sold budget of Strong, Inc. for this coming year (LO 5). Budgeted direct materials cost per unit (1 ounce per unit x $10 per ounce) Budgeted direct labor cost per unit (0.10 hour per unit x S10 per hour) Budgeted variable manufacturing overhead cost per unit Budgeted fixed manufacturing cost per unit ($20,000 per year + 10.100 units, rounded to whole dollars) Budgeted manufacturing cost per unit $10 SI S2 S2 SIS Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Budgeted units' sales Budgeted manufacturing cost per unit Budgeted cost of goods sold Chapter 08 - Budgetary Planning Managerial Accounting, 4 ed, Whitecotton, Libby, Phillips 7. Complete the selling and administrative budget of Strong, Inc. for this coming year (LO Sg). Quarter 1 $100.000 5% Quarter 2 $200,000 5% Quarter 3 $300,000 5% Quarter 4 $400,000 5% Year $1.000.000 5% Budgeted sales revenue 5% of sales revenue Variable selling expenses Fixed administrative expenses Total budgeted selling and administrative expense S50.000 S50,000 $50.000 $50,000 $200,000 8. Complete the budgeted income statement of Strong, Inc. for this coming year (LO Sh). Quarter ! $100.000 Quarter 2 $200,000 Quarter 3 $300,000 Quarter 4 $400,000 Year $1,000,000 Budgeted sales revenue Budgeted cost of goods sold Budgeted gross margin Budgeted selling and administrative expenses Budgeted operating income