Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin

Greiner Company makes and sells high$-$quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner$$s master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee$-$related benefits, and the employer$$s share of FICA. Labor saving machinery will be fully operational by March. Also, as of March $1,$ the company$$s union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have $5,600$ glare filters in inventory on December $31$ of the current year, and has a policy of carrying $35$ percent of the following month$$s projected sales in inventory. Information on the first four months of the coming year is as follows:

January

February

March

April

Estimated unit sales

$36,000$

$34,500$

$39,000$

$38,600$

Sales price per unit

$$80$

$$80$

$$75$

$$75$

Direct labor hours per unit

$3\mathrm{.}0$

$3\mathrm{.}0$

$2\mathrm{.}5$

$2\mathrm{.}5$

Direct labor hourly rate

$$18$

$$18$

$$20$

$$20$

Direct materials cost per unit

$$9$

$$9$

$$9$

$$9$

Required:

Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit.

$1.$ Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year.

a$.$ Production budget in units:

January

February

March

Total

Unit sales

fill in the blank

fill in the blank

fill in the blank

fill in the blank

Desired ending inventory

fill in the blank

fill in the blank

fill in the blank

fill in the blank

Total units required

fill in the blank

fill in the blank

fill in the blank

fill in the blank

Less: Beginning inventory

fill in the blank

fill in the blank

fill in the blank

fill in the blank

Units produced

fill in the blank

fill in the blank

fill in the blank

fill in the blank

b$.$ Direct labor budget in hours: Round your answers to two decimal places, if required.

January

February

March

Total

Units produced

fill in the blank

fill in the blank

fill in the blank

fill in the blank

Direct labor hours per unit

fill in the blank

fill in the blank

fill in the blank

Total labor budget $($hours$)$

fill in the blank

fill in the blank

fill in the blank

fill in the blank

c$.$ Direct materials cost budget:

January

February

March

Total

Units produced

fill in the blank

fill in the blank

fill in the blank

fill in the blank

Cost per unit

$

fill in the blank

$

fill in the blank

$

fill in the blank

$

fill in the blank

Total direct materials

$

fill in the blank

$

fill in the blank

$

fill in the blank

$

fill in the blank

d$.$ Sales budget: Round unit selling price amounts to the nearest cent and use the same for subsequent requirements.

January

February

March

Total

Unit sales

fill in the blank

fill in the blank

fill in the blank

fill in the blank

Unit selling price

$

fill in the blank

$

fill in the blank

$

fill in the blank

$

fill in the blank

Total sales revenue

$

fill in the blank

$

fill in the blank

$

fill in the blank

$

fill in the blank

$2.$ Calculate the total budgeted contribution margin for Greiner Company by month and in total for the first quarter of the coming year. Enter all your answers as positive amounts. $($CMA adapted$)$

January

February

March

Total

Sales revenue

$

fill in the blank

$

fill in the blank

$

fill in the blank

$

fill in the blank

Direct labor cost

fill in the blank

fill in the blank

fill in the blank

fill in the blank

Materials cost

fill in the blank

fill in the blank

fill in the blank

fill in the blank

Contribution margin

$

fill in the blank

$

fill in the blank

$

fill in the blank

$

fill in the blank