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Please help. It is a managerial accounting question about budgeting cost. A company make makes reasonably high=end skateboards which sell for $250 for each. The
Please help. It is a managerial accounting question about budgeting cost.
A company make makes reasonably high=end skateboards which sell for $250 for each. The production process is fairly simple and involves assembling components purchased from various suppliers. Since each skateboard only takes one hour to assembling components purchased from various suppliers. Since each skateboard only takes one hour to assemble, there is essentially no workinprocess inventory. Bonzo's boards has the capacity to make 2000 skateboards per year. Costs for the skateboard components are: Deck $40 Truck $40 Wheels 45 Bearings 20 Bolts,etc 20 Hardware packagenet 125 Total 165 Each board should take one hour of firect labor to assemble. Direct labor wages are $50 per hour other costs on a monthly basis are: Rent $1000 Insurance 150 Utilities 100 Miscellaneous 200 total 1450 Inventory balances are as follows ( Bonzo's uses FIFO inventory cost flow assumption) Units Dollars Decks 1/1/2016 305 $12,200 12/31/2016 350 Budgeted Hardware Package 1/1/2016 265 $33,125 12/31/2016 300 Budgeted Finished skateboards 1/1/2016 300 $63,000 12/31/2016 400 Budgeted During 2016 the company expects to sell 1000 skateboards what is the budgeted cost of Skateboard manufactured for 2016? what is the budgeted cost of Decks purchased for 2016? what is the budgeted cost of Hardware Packages purchased for 2016? what id budgeted dollar value of ending Finished Skateboard inventory? what id budgeted dollar value of ending Hardware inventory? how much income does Bonzo's boards expect to make if they sell 1000 skateboards in 2016? how much income does Bonzo's boards expect to make if they sell 800 skateboards in 2016?( production is adjusted appropriately)? how much income does Bonzo's boards expect to make if they sell 1200 skateboards in 2016?( production is adjusted appropriately)Step by Step Solution
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