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Joshua plans to have 3,248 finished bricks at a cost of $28,420 in inventory at the beginning of the year. The company applies manufacturing overhead
Joshua plans to have 3,248 finished bricks at a cost of $28,420 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 direct labor hour for variable manufacturing overhead. Prepare Sheridan & Hills ending inventory and cost of goods sold budget for the first quarter. Assuming that the company has no beginning and ending WIP inventory.
Joshua Hill, Sheridan & Hill Fabricators production manager, has just received the company's sales budget for the first quarter: Budgeted unit sales Budgeted ending inventory Total units required Beginning inventory Budgeted production January 11,600 4,524 16,124 3,248 12,876 February 22,620 4,060 26,680 4,524 22,156 March 20,300 3,364 23,664 4,060 19,604 Quarter 54,520 3,364 57,884 3,248 54,636 Its manufacturing overhead budget for the first quarter is as follows: DLH worked VOH per DLH Budgeted VOH Budgeted FOH Total Budgeted MOH Noncash MOH items Depreciation Total Cash MOH cost January 3,219 $0.70 2,253 65,250 67,503 February 5,539 $0.70 3,877 65,250 69,127 March 4,901 $0.70 3,431 65,250 68,681 Quarter 13,659 $0.70 9,561 195,750 205,311 17,400 17,400 $51,727 17,400 $51,281 52,200 $153,111 He also has received the direct materials purchases budget and direct labor budget which were as follows: April 16,124 x 5 80,620 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 12,876 x 5 64,380 11,078 75,458 10,962 64,496 $0.40 $25,798 February 22,156 x 5 110,780 9,802 120,582 11,078 109,504 $0.40 $43,802 March 19,604 x 5 98,020 8,062 106,082 9,802 96,280 $0.40 $38,512 Quarter 54,636 x 5 273,180 8,062 281,242 10,962 270,280 $0.40 $108,112 Budgeted production Standard DLH per unit Total DLH required Standard wage rate Budgeted DL cost January 12,876 x 0.25 3,219 x $20 $64,380 February 22,156 x 0.25 5,539 x $20 $110,780 March 19,604 x 0.25 4,901 x $20 $98,020 Quarter 54,636 x 0.25 13,659 x $20 $273,180 Joshua plans to have 3,248 finished bricks at a cost of $28,420 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 $0.70 per direct labor hour for variable manufacturing overhead. Prepare Sheridan & Hill's ending inventory and cost of goods sold budget for the first quarter. Assuming that the company has no beginning and ending WIP inventory. (Round unit cost to 3 decimal places, e.g. 0.533 & all other answers to o decimal places, e.g. 5,275.) Direct Materials Beginning DM Inventory 10962 TOM Purchases DM used in Production V TEnding DM Inventory Finished Goods Inventory Unit Costs Direct Material Direct Labor Toverhead Total Std. Cost per unit Ending FG Inventory (units) Finished Goods Inventory Unit Costs 2 Direct Material XX Direct Labor Toverhead Total Std. Cost per unit Ending FG Inventory (units) Ending FG Inventory ($) Cost of Goods Sold Beginning WIP Direct Materials used v Direct Labor Toverhead Cost of Goods Sold Beginning WIP Direct Materials used v Direct Labor v Overhead Total Mfg. Cost Ending WIP COGM Beginning FG Inventory Ending FG Inventory v Budgeted COGSStep by Step Solution
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