need 6-13

1) Sales Budget for July

	July
Budgeted selling price/unit	800
Budgeted Sales	6500
The Total Budgeted Sales( $ )	52,00,000

2) Production Budget for July

	July (units)
Add: Closing inventory of finished the goods(6800x0.1)=(680)	680
Budgeted Sales units	6500
Units Needed	7180
Less: Opening inventory of finished the goods(6500x0.1)=(650)	(650)
Production units for month	6530

3) Production Budget for August

	August(units)
Budgeted Sales units	6800
Add: Closing inventory of finished the goods(7800x0.1)=(780)	780
Units Needed	7580
Less: Opening inventory of finished goods	(680)
The Production units for month	6900

4) The Direct Material Used Budget for July

	Galaxy -80	RS-360
The Direct materials/unit	4 pound	2 pound
The Total Direct Materials used	(6530unitsx4lbs)	(6530unitsx2lbs)
Cost of Material/pound	1.25/pound	5/pound
The Total Cost of Material Used	32650	65300

5) Direct Material Purchase Budget for July

	Galaxy -80	RS-360
Requirements for Production	26120 Ibs	13060 lbs
Add: Desired closing inventory	1380	690
Total Requirements	27500	13750
Less: Opening inventory (27500-26194), (13750-13097)	(1306)	(653)
Quantity to be purchased	26194	13097
Purchase Price	1.25 per pound	5 per pound
Total Purchase Cost	32742.5	65485

Hawkins Engineering's management wants to prepare budgets for one of its products, GalaxyRS, for July 2019. The firm sells the product for $800 per unit and has the following expected sales (in units) for these months in 2019: April st 6,000 800 May tember 4,000 June July Augu 5,600 6,500 6, 7,800 Typically, cash sales for Hawkins represent 20% of sales while credit sales represent 80%. Hawkins bills customers on the first day of the month following the month of sale. Ex shown that 85% of the company's billings will during the month of sale, 10% by the end of the month after the sale and 5% will ultimately be uncollectible. perience has be collected The production process requires the following: Standard Costs: Galaxy-80 RS-360 lbs Direct labor Skill level 1 hours S50/hour Skill level 2 hours S20/hour 4 lbs S1.25/lb $5.00/lb 0.01 0.10 Variable manufacturing overhead is budgeted at S1,200 per batch (of 100 units) plus $80 per direct labor hour. In addition to variable overhead, the firm has a monthly fixed factory overhead of S60,000, of which $25,000 is depreciation expense. The firm pays all manufacturing labor and factory overhead when incurred. The firm's policy is to maintain an ending finished goods inventory each month equal to 10% of the following month's budgeted sales, but in no case less than 500 units. All materials inventories are to be maintained at 5% of the production needs for the next month, but not to exceed 1,000 pounds. The firm expects all inventories at the end of June to be within the guidelines. The nurchase terms for materials are 3/10 n/30 Hawkinos