prepare for april - june 2018

: Managerial Accounting Odd Semester 2017/2018 : December 4, 2017 Qulz Date Duration 120 minutes (2 hours) product. The Aphabetcal Com began its operations on January 1,2017. ts management wants to prepare operational budgets for its sales units for these products in 2017 and 2018 as follows YEAR: 2018 55,000 60,000 67,000 75,000 83,000 90,000 100,000 110,000 10,000 12000 February March 15.000 18,000 22,000 25,000 28,000 32,000 June August ember 36,000 September 40,000 45.000 135,000 148,000 160,000 December The following data pertain to production specifcations and inventory a. The seling price per unit is $20 in 2017. The price will increase to $25 per unit in 2018 b. The ending inventory of finished goods policy 20% of next month's unit sold. c. The product requires two materia'ls named metal strip and glass sheet. Data on direct material's used as follows policies Per unit usage Cost 2.5 foot Metal strip 21 feet 20 percent of next morth's production needs 03 sheet $ 107 sheet 10 percent of next monthi's production needs sheet d. The product requires two types of direct labor assembly and finishing. Data on direct labor as follows Labor types Per unit usage | 4 hours Cost 10 /hour 2 / hour 0.2 hours The overhead is and the monthly fixed overhead costs are $30,000 s $8, & administrative expenses are $8,000 for each product type. The commissions are $2 per unit sold f Monthly selling& g. Income tax rate is 20%. Required Varidble ex rxe d Prepare Alphabetical's budgets for Month Year April - June1 2018 The operational budgets consist of 1. Sales budget 2. Production budget, provide the ending finished goods inventory calculation for each month 3. Direct materials purchased budget for each type of material, provide the ending direct materials inventory calculation for each month Direct labor budget for each type of labor Manufacturing overhead budget Selling and administrative expenses budget 4. 7. Projected income statement, provide the calculation of production cost per unit