Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Just need answer fo D) Direct Materials Budget for 4th quarter 2020. answered Out of Penticton Pottery Inc. is a locally owned and operated ceramics

image text in transcribed
image text in transcribed
Just need answer fo D) Direct Materials Budget for 4th quarter 2020.
answered Out of Penticton Pottery Inc. is a locally owned and operated ceramics company selling specialty clay products. You have been recently add to the accounting team and you observe the following sales, product and cash collections data for 2020/2021: question Month Sales Production April 2020 21,000 Bowls 20,900 Bowls May 2020 20,000 Bowls 20,200 Bowls June 2020 22,000 Bowls 22,100 Bowls July 2020 23,000 Bowls 23,300 Bowls August 2020 26,000 Bowls 25,200 Bowls September 2020 18,000 Bowls 18,100 Bowls October 2020 | 19,000 Bowls 19,200 Bowls November 2020 21,000 Bowls 21,600 Bowls December 2020 | 27,000 Bowls 26,900 Bowls January 2021 26,000 Bowls 24,900 Bowls February 2021 1 5,000 Bowls 15,100 Bowls March 2021 16,000 Bowls 16,500 Bowls April 2021 21,000 Bowls 19,500 Bowls Each Bowl requires: 0.8 kilograms (kg) of raw clay 0.2 hours of direct labour Selling price per Bowl: $15.00 Costs of inputs: $ 5.20 per kilogram (kg) of raw clay $ 21.00 per hour for direct labor 5.00 per hour for variable manufacturing overhead $ 8,900 per month fixed manufacturing overhead including: $ 2,800 per month depreciation - factory assets Division ends each month with enough materials in inventory to cover next month's production requirements of 20% attelp.pp.uccip MOTO 21.00 per hour for direct labor 5.00 per hour for variable manufacturing overhead 8,900 per month fixed manufacturing overhead including: $ 2,800 per month depreciation - factory assets Division ends each month with enough materials in inventory to cover next month's production requirements of : 20% Required: Using the forecast data as provided above, calculate the following: (Note: wrong quarter used = 0 marks on question). a) The Sales Budget for the Fourth (4") Quarter of 2020. (3 marks) b) The Direct Labor Budget for the Fourth (4") Quarter of 2020. (4 marks) c) The Manufacturing Overhead Budget for the Fourth (4") Quarter of 2020. (8 marks) d) The Direct Materials Budget for the Fourth (4") Quarter of 2020. (10 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Applied Statistics For Public And Nonprofit Administration

Authors: Kenneth J. Meier, Jeffrey L. Brudney, John Bohte

9th Edition

1285737237, 978-1285974521, 1285974522, 978-1285737232

Students also viewed these Accounting questions