Problem 939 Preparation of Master Budget (LO 2, 3, 4) 1 Total sales revenue $1,650,000 4 Total direct labor cost $66,825 Edgeworth Box Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements Type of Box C P Direct material required per 100 boxes Corrugating medium ($ 15 per pound) 20 pounds 30 pounds Paperboard ($ 30 per pound) 30 pounds 70 pounds Direct labor required per 100 boxes ($18 00 per hour) 25 hour 50 hour The following manufacturing overhead costs are anticipated for the next year The predetermined overhead rate is based on a production volume of 495,000 units for each type of box Manufacturing overhead is applied on the basis of direct labor hours Indirect material 15,750 Indirect labor 75,000 Utilities 37,500 Property taxes 27,000 Insurance 24,000 Depreciation 43,500 Total $ 222,750 The following selling and administrative expenses are anticipated for the next year Salaries and fringe benefits of sales personnel $112,500 Advertising 22,500 Management salaries and fringe benefits 135,000 Clerical wages and fringe benefits 39,000 Miscellaneous administrative expenses 6,000 Total 315,000 The sales forecast for the next year is as follows Sales Volume Sales Price Box type C 500,000 boxes $135 per hundred boxes Box type P 500,000 boxes 195 per hundred boxes The following inventory information is available for the next year Expected Inventory Desired Ending Inventory January 1 December 31 Finished goods Box type C 10,000 boxes 5,000 boxes Box type P 20,000 boxes 15,000 boxes Raw material Corrugating medium 5,000 pounds 10,000 pounds Paperboard 15,000 pounds 5,000 pounds Required Prepare a master budget for Edgeworth Box Corporation for the next year Assume an income tax rate of 35 percent Include the following schedules 1 Sales budget 2 Production budget 3 Direct material budget 4 Direct labor budget 5 Manufacturing overhead budget 6 Selling and administrative expense budget 7 Budgeted income statement ( Hint To determine cost of goods sold, first compute the manufacturing cost per unit for each type of box Include applied manufacturing overhead in the cost Carry these calculations to three decimal places ) Problem 9 39 Preparation of Master Budget (LO 2, 3, 4) 1 Total sales revenue $1,650,000 4 Total direct labor cost $66,825 Edgeworth Box Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements Type of Box C P Direct material required per 100 boxes Corrugating medium ($ 15 per pound) 20 pounds 30 pounds Paperboard ($ 30 per pound) 30 pounds 70 pounds Direct labor required per 100 boxes ($18 00 per hour) 25 hour 50 hour The following manufacturing overhead costs are anticipated for the next year The predetermined overhead rate is based on a production volume of 495,000 units for each type of box Manufacturing overhead is applied on the basis of direct labor hours Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total $15,750 $75,000 $37,500 $27,000 $24,000 $43,500 $222,750 The following selling and administrative expenses are anticipated for the next year Salaries and fringe benefits of sales personnel Advertising Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses Total $112,500 $22,500 $135,000 $39,000 $6,000 $315,000 The sales forecast for the next year is as follows Box type C Box type P Sales Volume 500,000 boxes 500,000 boxes Sales Price $135 per hundred boxes 195 per hundred boxes The following inventory information is available for the next year Expected Inventory January 1 Finished goods Box type C Box type P Raw material Corrugating medium Paperboard Desired Ending Inventory December 31 10,000 boxes 20,000 boxes 5,000 boxes 15,000 boxes 5,000 pounds 15,000 pounds 10,000 pounds 5,000 pounds Required Prepare a master budget for Edgeworth Box Corporation for the next year Assume an income tax rate of 35 percent Include the following schedules 1 Sales budget 2 Production budget 3 Direct material budget 4 Direct labor budget 5 Manufacturing overhead budget 6 Selling and administrative expense budget 7 Budgeted income statement ( Hint To determine cost of goods sold, first compute the manufacturing cost per unit for each type of box Include applied manufacturing overhead in the cost Carry these calculations to three decimal places )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 27, 2024

Problem 939 Preparation of Master Budget (LO 2, 3, 4) 1. Total sales revenue: $1,650,000 4. Total direct-labor cost: $66,825 Edgeworth Box Corporation manufactures two

Problem 939 Preparation of Master Budget (LO 2, 3, 4) 1. Total sales revenue: $1,650,000 4. Total direct-labor cost: $66,825 Edgeworth Box Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. Type of Box C P Direct material required per 100 boxes: Corrugating medium ($.15 per pound) 20 pounds 30 pounds Paperboard ($.30 per pound) 30 pounds 70 pounds Direct labor required per 100 boxes ($18.00 per hour) .25 hour .50 hour The following manufacturing-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 495,000 units for each type of box. Manufacturing overhead is applied on the basis of direct-labor hours. Indirect material 15,750 Indirect labor 75,000 Utilities 37,500 Property taxes 27,000 Insurance 24,000 Depreciation 43,500 Total $ 222,750 The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel $112,500 Advertising 22,500 Management salaries and fringe benefits 135,000 Clerical wages and fringe benefits 39,000 Miscellaneous administrative expenses 6,000 Total 315,000 The sales forecast for the next year is as follows: Sales Volume Sales Price Box type C 500,000 boxes $135 per hundred boxes Box type P 500,000 boxes 195 per hundred boxes The following inventory information is available for the next year. Expected Inventory Desired Ending Inventory January 1 December 31 Finished goods: Box type C 10,000 boxes 5,000 boxes Box type P 20,000 boxes 15,000 boxes Raw material: Corrugating medium 5,000 pounds 10,000 pounds Paperboard 15,000 pounds 5,000 pounds Required: Prepare a master budget for Edgeworth Box Corporation for the next year. Assume an income tax rate of 35 percent. Include the following schedules. 1. Sales budget. 2. Production budget. 3. Direct-material budget. 4. Direct-labor budget. 5. Manufacturing-overhead budget. 6. Selling and administrative expense budget. 7. Budgeted income statement. ( Hint: To determine cost of goods sold, first compute the manufacturing cost per unit for each type of box. Include applied manufacturing overhead in the cost. Carry these calculations to three decimal places.) image text in transcribed

Problem 9-39 Preparation of Master Budget (LO 2, 3, 4) 1. Total sales revenue: $1,650,000 4. Total direct-labor cost: $66,825 Edgeworth Box Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. Type of Box C P Direct material required per 100 boxes: Corrugating medium ($.15 per pound) .................................................. 20 pounds 30 pounds Paperboard ($.30 per pound) ................................................................ 30 pounds 70 pounds Direct labor required per 100 boxes ($18.00 per hour) ............................ .25 hour .50 hour The following manufacturing-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 495,000 units for each type of box. Manufacturing overhead is applied on the basis of direct-labor hours. Indirect material ......................................................................................................................................... Indirect labor .............................................................................................................................................. Utilities ....................................................................................................................................................... Property taxes ............................................................................................................................................ Insurance ................................................................................................................................................... Depreciation .............................................................................................................................................. Total ........................................................................................................................................................... $15,750 $75,000 $37,500 $27,000 $24,000 $43,500 $222,750 The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel ............................................................................................. Advertising .................................................................................................................................................... Management salaries and fringe benefits .................................................................................................... Clerical wages and fringe benefits ................................................................................................................ Miscellaneous administrative expenses ....................................................................................................... Total .............................................................................................................................................................. $112,500 $22,500 $135,000 $39,000 $6,000 $315,000 The sales forecast for the next year is as follows: Box type C ........................................................ Box type P ........................................................ Sales Volume 500,000 boxes 500,000 boxes Sales Price $135 per hundred boxes 195 per hundred boxes The following inventory information is available for the next year. Expected Inventory January 1 Finished goods: Box type C ................................................ Box type P ................................................ Raw material: Corrugating medium ................................. Paperboard ............................................... Desired Ending Inventory December 31 10,000 boxes 20,000 boxes 5,000 boxes 15,000 boxes 5,000 pounds 15,000 pounds 10,000 pounds 5,000 pounds Required: Prepare a master budget for Edgeworth Box Corporation for the next year. Assume an income tax rate of 35 percent. Include the following schedules. 1 Sales budget. 2 Production budget. 3 Direct-material budget. 4 Direct-labor budget. 5 Manufacturing-overhead budget. 6 Selling and administrative expense budget. 7 Budgeted income statement. ( Hint: To determine cost of goods sold, first compute the manufacturing cost per unit for each type of box. Include applied manufacturing overhead in the cost. Carry these calculations to three decimal places.)