Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz do the whole thing its my last question :( Space Company has developed the following standards relating to the production of their finished units:

plz do the whole thing its my last question :( image text in transcribed
image text in transcribed
Space Company has developed the following standards relating to the production of their finished units: Direct Materials, 5 pounds per unit @ $8.00 per pound Direct Labor, 7 hours per unit @ $16 per labor hour Variable Overhead, 4 machine hours per unit @ $9 per machine hour Fixed overhead costs are estimated at $508,200 each quarter. The expected selling price is $400 per unit. Selling and administrative costs are expected to be $8 per unit variable and $620,000 fixed each quarter. The following sales forecast is available for the year 2020: First Quarter 9,000 units; Second Quarter 11,000 units; Third Quarter 13,000 units, and Fourth Quarter 12,000 units. The expected sales in the First Quarter of the year 2021 are 12,000 units. Management policy is to maintain a finished goods inventory equal to 40% of the next quarter's sales and a raw materials inventory equal fo 30% of the next quarter's production requirements. The beginning inventories of the first quarter of the year 2020 are expected to meet these same requirements. A Prepare a production budget by quarters for the year 2020. PRODUCTION BUDGET Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total - B. Prepare a direct materials purchase budget for the first TWO quarters the year 2020 only DIRECT MATERIALS PURCHASE BUDGET Quarter 1 Quarter 2 Quarter 3 Quarter 4 8 Total m 3 2 4 5 6 7 8 C. Compute the following amounts: 1. What is the budgeted ANNUAL production for the year 2020? 2. What are the budgeted ANNUAL machine hours needed for production for the year 2020? 3. What are the budgeted ANNUAL fixed overhead costs for the year 2020? 4. Based on machine hours, what is the pre-determined fixed overhead rate for the year 2020? 5. What is the total expected cost of a finished unit? D. Compute the following amounts for the FIRST quarter of the year 2020 only: 1. What is the budgeted direct labor cost? 2. What is the budgeted variable overhead cost? 3. What is the budgeted fixed overhead cost? 4. What dollar amount of fixed overhead cost will be applied to production? 5. What is the budgeted amount of sales dollars? 6. What is budgeted cost of goods sold? 7. What is the budgeted selling & administrative cost? 8. What is budgeted net income? 9. What is the expected balance at the end of the quarter of raw materials (in dollars)? 10. What is the expected balance at the end of the quarter of finished goods (in dollars)? E What amount of fixed overhead cost will be applied to production for the year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Latest Qualified Internal Auditor Exam Questions

Authors: Pass Assured

1st Edition

1699310599, 978-1699310595

More Books

Students also viewed these Accounting questions

Question

=+ (c) Similarly generalize Chevyshev's and Hlder's inequalities.

Answered: 1 week ago

Question

5. Identify the logical fallacies, deceptive forms of reasoning

Answered: 1 week ago

Question

6. Choose an appropriate organizational strategy for your speech

Answered: 1 week ago