Joshua Hill, Marigold & Hill Fabricators' production manager, has just received the company's sales budget for the first quarter:

PHOTO ONE

Manufacturing overhead budget for the first quarter follows:

PHOTO ONE

He also received the direct materials purchases budget and direct labor budget which were as follows:

PHOTO TWO

Joshua plans to have 2,072 finished bricks at a cost of $18,130 in inventory at the beginning of the year. The company applies manufacturing overhead based on direct labor hours, and the current predetermined rates are $12 per direct labor hour for fixed manufacturing overhead and $0.70 per dirext labor hour for variable manufacturing overhead.

Prepare Marigold & Hill's ending inventory and COGS budget for the first quarter. Assuming the company has no beginning and ending WIP inventory.

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Budgeted unit sales Budgeted ending inventory Total units required Beginning inventory Budgeted production January 7,400 2,886 10,286 2,072 8,214 February 14,430 2,590 17,020 2,886 14,134 March 12,950 2,146 15,096 2,590 12,506 Quarter 34,780 2,146 36,926 2,072 34,854 Its manufacturing overhead budget for the first quarter is as follows: March Qus ,127 3 January February 2,054 3,534 $0.70 $0.70 1,438 2,474 41,62541,625 43,063 44,099 DLH worked VOH per DLH Budgeted VOH Budgeted FOH Total Budgeted MOH Noncash MOH items Depreciation Total Cash MOH cost 2 Quarter 8,715 $0.70 6,101 124,875 130,976 $0.70 2,189 41,625 43,814 91.625 11,100 $31,963 $31,963 11,100 $32,999 $32,999 11,100 $32,714 $32,714 33,300 $97,676 597,676 April 10,286 X5 51,430 Budgeted production Standard pounds per unit Production needs Budgeted ending inventory Total DM required (lbs.) Beginning inventory Budgeted purchases (lbs.) Standard cost per pound Budgeted purchases cost January 8,214 x 5 41,070 7,067 48,137 6,993 41,144 $0.40 $16,458 February 14,134 x 5 70,670 6,253 76,923 7,067 69,856 $0.40 $27,942 March 12,506 x 5 62,530 5,143 67,673 6,253 61,420 $0.40 $24,568 Quarter 34,854 x 5 174,270 5,143 179,413 6,993 172,420 $0.40 $68,968 Budgeted production Standard DLH per unit Total DLH required Standard wage rate Budgeted DL cost January 8,214 x 0.25 2,054 $20 $41,080 February 14,134 x 0.25 3,534 x $20 $70,680 March 12,506 x 0.25 3,127 x $20 $62,540 Quarter 34,854 x 0.25 8,715 * $20 $174,300 Finished Goods Inventory Direct Materials he Th II Il ll ll TI 1 LA LA LA Cost of Goods Sold w