Michael Davis, Concord & Davis Fabricators' production manager, has just received the company's sales budget forth quarter: CV Budgeted unit sales Budgeted ending inventory Total units required Beginning inventory Budgeted production January 23,000 5,200 28,200 3.200 25,000 February 26,000 6,200 32,200 5,200 27,000 March 31,000 7,200 38,200 6,200 32,000 Quarter 80,000 7,200 87,200 3,200 84,000 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 5,000 $1.75 8,750 98,000 106,750 February 5,400 $1.75 9,450 98,000 107,450 March 6,400 $1.75 11,200 98,000 109.200 Quarter 16,800 $1.75 29,400 294,000 323,400 30,000 $76,750 30,000 $77,450 30,000 $79.200 90,000 $233.400 He also has received the direct materials purchases budget and direct labor budget which were as follows: March 32,000 x 6 April 34,000 x 6 204,000 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 25,000 x 6 150,000 16,200 166,200 13,000 153,200 1.50 $229,800 February 27,000 x 6 162,000 19,200 181,200 16,200 165,000 $1.50 $247,500 192,000 20,400 212,400 19,200 193,200 $1.50 $289,800 Quarter 84.000 x 6 504,000 20,400 524,400 13,000 511,400 $1.50 $767,100 Budgeted production Standard DLH per unit Total DLH required Standard wage rate Budgeted DL cost January 25,000 x 0.20 5,000 * $20 $100,000 February 27,000 x0.20 5,400 * $20 $108,000 March 32,000 x0.20 6,400 * $20 $128,000 Quarter 84,000 x0.20 16,800 * $20 $336,000 Joshua plans to have 3,200 finished bricks at a cost of $46,000 in inventory at the beginning of the year. The company applies manufacturing overhead based on direct labor hours, and the current predetermined rates are $12.25 per direct labor hour for fixed manufacturing overhead and $1.75 per direct labor hour for variable manufacturing overhead, Joshua plans to have 3,200 finished bricks at a cost of $46,000 in inventory at the beginning of the year. The company applies manufacturing overhead based on direct labor hours, and the current predetermined rates are $12.25 per direct labor hour for fixed manufacturing overhead and $1.75 per direct labor hour for variable manufacturing overhead. Prepare Concord & 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 2 decimal places, e.g. 5.33 & all other answers to decimal places, e.g. 5,275.) Direct Materials $ > V > $ Finished Goods Inventory C -/1 III $ w $ Cost of Goods Sold 09 > s . > >
