Question
Prepare a Sales Budget. Toyota Motor is Preparing bugets for the quarter that ends in December 31 st . Budget Sales of Yaris Model for
- Prepare a Sales Budget. Toyota Motor is Preparing bugets for the quarter that ends in December 31st.
Budget Sales of Yaris Model for the next months are:
September 4,000 units
October 10,000 units
November 6,000 units
December 5,000 units
January 5,000 units
Selling Price is $16,000 per unit.
- The Management of Toyota Motor wants ending inventory to be equal to 1,000 sales units. On September 30, 2,000 units were on hand. Prepare a production budget.
- Prepare a Direct Material Budget, using the amount of $7,000 for the Direct Materials required per unit. Management dont want material on hand at the end of each month.
- Prepare a Direct Labor Budget. For the three months, the direct labor workforce will be paid for a flat rate of $10/hour. Required work hours are 2,000 hours per month.
- Prepare the Overhead Budget for the Quarter with the following information:
Indirect labor Oct = $10,000; Nov = $8,000; Dec = $8,000
Indirect Material Oct = $2,000; Nov = $2,000; Dec = $2,000
Utilities Oct = $5,000; Nov = $4,000; Dec = $6,000
Rent Oct = $50,000; Nov = $50,000; Dec = $50,000
Insurance Oct = $2,100; Nov = $2,000; Dec = $1,800
Maintenance Oct = $2,000; Nov = $21000; Dec = 2,500
Bonus! Write down the six steps in the Decision Making Process.
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