Question
Partial Master Budget Rhett Corporation manufactures and sells dress shirts. Rhett Corporation will use the following information to prepare its master budget for the first
Partial Master Budget
Rhett Corporation manufactures and sells dress shirts. Rhett Corporation will use the following information to prepare its master budget for the first quarter of the year:
Rhett Corporation budgeted sales in units:
- April: 25,000 units
- May: 33,000 units
- June: 27,000 units
- July: 21,000 units
Selling price: $22 per shirt
Information for the Production Budget:
- Ending finished goods inventory at March 31st: 3,750 shirts
- Desired ending inventory of shirts: 15% of the next month's sales
Information for the Direct Materials Budget:
- Each shirt (unit) requires: 3 yards of cloth
- Ending Inventory of cloth in yards at March 31st: 7,860 yards
- Desired ending inventory of cloth in yards: 10% of the next month's production needs
- Materials needed for production for July: 65,250 yards
- Cloth costs: $2 per yard
Required:
Using the above information, enter the totals for the sales, production and materials budgets below. For the numbers listed with a "?". please calculate those using a piece of scratch paper.
Your amounts should be WHOLE NUMBERS ONLY. NO COMMAS, NO DECIMALS, NO DOLLAR SIGNS or other characters.
| Sales Budget: | April | May | June |
| Budgeted sales in units | 25,000 | 33,000 | 27,000 |
| Budgeted sales in dollars @ $22 per shirt | $ | $ | $ |
| Production Budget: | April | May | June |
| Sales budget in units | 25,000 | 33,000 | 27,000 |
| Add: Desired ending inventory (units) | ? | ? | ? |
| Required units of available production | ? | ? | ? |
| Less: Beginning inventory | ? | ? | ? |
| Units to be produced | |||
| Materials Budget: | April | May | June |
| Production budget (units) | ? - from above | ? - from above | ? - from above |
| Materials per unit needed for production (in yards) | 3 | 3 | 3 |
| Total materials needed for production (in yards) | ? | ? | ? |
| Add: Desired ending inventory (in yards) | ? | ? | ? |
| Total materials needed (in yards) | ? | ? | ? |
| Less: Beginning inventory in yards | ? | ? | ? |
| Materials Purchases in Yards | ? | ? | ? |
| Cloth costs per yard | $2 | $2 | $2 |
| Materials Purchases in Dollars | $ | $ | $ |
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The Process Auditing Techniques Guide
Authors: J. P. Russell
1st Edition
0873895959, 978-0873895958
