Q1. Direct Labor Cost Budget

Rip Court Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for March for the two rackets is as follows

	Junior	Pro Striker
Production budget	7,500 units	21,300 units

Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:

	Forming Department	Assembly Department
Junior	0.25 hour per unit	0.5 hour per unit
Pro Striker	0.35 hour per unit	0.75 hour per unit

The direct labor rate for each department is as follows:

Forming Department	$16 per hour
Assembly Department	$11 per hour

Prepare the direct labor cost budget for March.

	Forming Department	Assembly Department
Hours required for production:
Junior	fill in the blank 1	fill in the blank 2
Pro Striker	fill in the blank 3	fill in the blank 4
Total hours required	fill in the blank 5	fill in the blank 6
Hourly rate	x$fill in the blank 7	x$fill in the blank 8
Total direct labor cost	$fill in the blank 9	$fill in the blank 10

Q2. Factory Overhead Cost Budget

Toot Sweet Company budgeted the following costs for anticipated production for August:

Advertising expenses	$269,520
Manufacturing supplies	14,770
Power and light	44,060
Sales commissions	297,870
Factory insurance	25,660
Production supervisor wages	129,580
Production control wages	33,690
Executive officer salaries	274,700
Materials management wages	37,050
Factory depreciation	20,990

Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.

Variable factory overhead costs:
Advertising expensesFactory depreciationFactory insuranceManufacturing suppliesSales commissions	$- Select -
Advertising expensesExecutive officer salariesFactory depreciationPower and lightSales commissions	- Select -
Advertising expensesExecutive officer salariesFactory depreciationFactory insuranceProduction supervisor wages	- Select -
Advertising expensesFactory depreciationFactory insuranceProduction control wagesSales commissions	- Select -
Advertising expensesExecutive officer salariesFactory depreciationMaterials management wagesSales commissions	- Select -
Total variable factory overhead costs		$fill in the blank 11
Fixed factory overhead costs:
Advertising expensesFactory insuranceManufacturing suppliesProduction supervisor wagesSales commissions	$- Select -
Advertising expensesExecutive officer salariesFactory depreciationPower and lightProduction supervisor wages	- Select -
Total fixed factory overhead costs		fill in the blank 16
Total factory overhead costs		$fill in the blank 17

Q3. Cost of Goods Sold Budget

Wilmington Chemical Company uses oil to produce two types of plastic products, P1 and P2. Wilmington budgeted 24,100 barrels of oil for purchase in June for $63 per barrel. Direct labor budgeted in the chemical process was $167,000 for June. Factory overhead was budgeted $273,300 during June. The inventories on June 1 were estimated to be:

Oil	$11,700
P1	7,800
P2	6,700
Work in process	9,700

The desired inventories on June 30 were:

Oil	$12,900
P1	7,200
P2	6,300
Work in process	10,000

Use the preceding information to prepare a cost of goods sold budget for June.

Cost of direct materials available for useDirect laborFactory overheadFinished goods inventory, June 1Total work in process during period			$- Select -
Direct laborFactory overheadWork in process inventory, June 1Work in process inventory, June 30Total work in process during period		$- Select -
Direct materials:
Cost of direct materials available for useDirect laborDirect materials inventory, June 1Direct materials inventory, June 30Total work in process during period	$- Select -
Cost of goods soldDirect laborDirect materials purchasesFinished goods inventory, June 30Total work in process during period	- Select -
Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal manufacturing costs	$- Select -
Less direct laborLess direct materials inventory, June 30Less factory overheadLess finished goods inventory, June 1Less total work in process during period	- Select -
Cost of direct materials placed in productionCost of goods soldFinished goods inventory, June 1Finished goods inventory, June 30Work in process inventory, June 30	$- Select -
Cost of goods soldDirect laborTotal work in process during periodWork in process inventory, June 1Work in process inventory, June 30	- Select -
Direct materials inventory, June 1Direct materials inventory, June 30Factory overheadTotal work in process during periodWork in process inventory, June 30	- Select -
Cost of direct materials available for useCost of finished goods available for saleCost of goods soldCost of goods manufacturedTotal manufacturing costs		- Select -
Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal work in process during the period		$- Select -
Less direct laborLess direct materials inventory, June 30Less factory overheadLess finished goods inventory, June 1Less work in process inventory, June 30		- Select -
Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal work in process during the period			- Select -
Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal work in process during the period			$- Select -
Less direct laborLess direct materials inventory, June 30Less factory overheadLess finished goods inventory, June 30Less work in process inventory, June 30			- Select -
Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal work in process during the period			$- Select -