q3.1
Walker Company prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 33,000 units. Company policy is to end each month with merchandise inventory equal to15% of budgeted sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. The company budgets sales of 220,000 units in October.
Sales (Units)Purchases (Units)July210,000226,500August320,000320,000September320,000305,000
Prepare the merchandise purchases budgets for the months of July, August, and September.
Walker Company prepares monthly budgets. The current budget plans for a September ending merchandise Inventory of 33,000 units. Company policy Is to end each month with merchandise Inventory equal to 15% of budgeted sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. The company budgets sales of 220,000 unlts In October. I I July 21u,ooo 225.5% August 320.000 320,000 September 320mm: 305.0\" Prepare the merchandise purchases budgets for the months of July, August. and September. Budgeted ending inventory unite Required units of available inventory Unite to be purchased 226.500 320.000 MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0./ direct labor hours at a rate of $19 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $14,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's materials requirement. At the end of August the company had 2,980 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September October November Units to be produced 5, 300 7,200 6, 100 (1) Prepare direct materials budgets for September and October. (2) Prepare direct labor budgets for September and October. (3) Prepare factory overhead budgets for September and October. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare direct materials budgets for September and October. MCO Leather Direct Materials Budget For the Months of September and October September October Budgeted production (units) Materials requirements per unit (Ibs.) Materials needed for production (lbs.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Budgeted beginning inventory (Ibs.) Materials to be purchased (lbs.)MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.? direct labor hours at a rate of $19 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $14,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's materials requirement. At the end of August the company had 2,980 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September October November Unite to he produced 5,300 7,200 6,100 {1] Prepare direct materials budgets for September and October. {2] Prepare direct labor budgets for September and October. {3] Prepare factory overhead budgets for September and October. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare direct labor budgets for September and October. [Round "DL hours required per unit" answers to one decimal place.) Budgeted production (units) DL hours required per unit Total direct labor hours needed Direct labor rate per hour I I I Total budgeted direct labor { Required1 Required3 ) MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hours at a rate of $19 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $14,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's materials requirement. At the end of August the company had 2,980 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September October November Unite to he produced 5,300 7,200 6,100 {1] Prepare direct materials budgets for September and October. [2] Prepare direct labor budgets for September and October. [3] Prepare factory overhead budgets for September and October. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare factoryr overhead budgets for September and October. Total direct labor hours needed VOH rate per DL hour Budgeted variable overhead Budgeted xed overhead [ l I Total budgeted factory overhead Tempo Company's xed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed Budget Sales [16,000 units N 5200 per unit) $3,200,000 Cost of goods sold Direct materials $368,000 Direct labor 672,000 Production supplies 432,000 Plant manager salary 168,000 1,640,000 Gross profit 1,560,000 Selling expenses Sales commissions 112,000 Packaging 224,000 Advertising 100,000 436,000 hdministrative expenses Administrative salaries 218,000 Depreciationoffice equip. 188,000 Insurance 158,000 Office rent 168,000 732,000 Income from operations 5 392,000 {1} Compute the total variable cost per unit. {2} Compute the total xed costs. {3] Compute the income from operations for sales volume of 14,000 units. {4} Compute the income from operations for sales volume of 18,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the total variable cost per unit. I Ulrecl'. materials v.1 DE , UUU Direct labor 672,009 Production supplies 432,009 Plant manager salary 168,009 1,640,009 Gross profit 1,560,009 Selling expenses Sales commissions 112,009 Packaging 224,009 Advertising 190,009 436,009 Administrative expenses Administrative salaries 218,009 Depreciationoffice equip. 188,009 Insurance 158,009 Office rent 168,009 T32,009 Income from operations $ 392,009 :1] Compute the total variable cost per unit. :2} Compute the total fixed costs. :3] Compute the income from operations for sales volume of 14,000 units. :4} Compute the income from operations for sales volume of 18,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute H12 total variable cost per unit. _:I Required 2 > Direct materials $306, UUU Direct labor 672,000 Production supplies 432,000 Plant manager salary 168 , 000 1, 640,000 Gross profit 1, 560, 000 Selling expenses Sales commissions 112,000 Packaging 224,000 Advertising 100 , 000 436, 000 Administrative expenses Administrative salaries 218,000 Depreciation office equip. 188 ,000 Insurance 158 , 000 Office rent 168,000 732,000 Income from operations $ 392, 000 (1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 14,000 units. (4) Compute the income from operations for sales volume of 18,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the total fixed costs. Total fixed costs Direct materials $306, VUU Direct labor 672, 000 Production supplies 432,000 Plant manager salary 168 ,000 1, 640,000 Gross profit 1, 560,000 Selling expenses Sales commissions 112, 000 Packaging 224,000 Advertising 100, 000 436 ,000 Administrative expenses Administrative salaries 218, 000 Depreciation office equip. 188, 000 Insurance 158, 000 Office rent 168, 000 732, 000 Income from operations $ 392, 000 (1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 14,000 units. (4) Compute the income from operations for sales volume of 18,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the income from operations for sales volume of 14,000 units. Income from operations at sales of 14,000 units Direct materials $306, UUU Direct labor 672, 000 Production supplies 432,000 Plant manager salary 168 , 000 1, 640, 000 Gross profit 1, 560, 000 Selling expenses Sales commissions 112 , 000 Packaging 224,000 Advertising 100 , 000 436,000 Administrative expenses Administrative salaries 218,000 Depreciation office equip. 188, 000 Insurance 158 , 000 office rent 168, 000 732,000 Income from operations $ 392,000 (1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 14,000 units. (4) Compute the income from operations for sales volume of 18,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the income from operations for sales volume of 18,000 units. Income from operations at sales of 18,000 units A manufactured product has the following information for August. Standard Actual Direct materials 2 lbs. per unit 8 $3.00 per 11:. Direct labor 0.5 hours per unit I\"! $20 per hour Overhead $18 per direct labor hour Units manufactured 12,200 Total manufacturing costs $300,400 {1] Compute the standard cost per unit. {2} Compute the total budgeted cost for production in August. {3] Compute the total cost variance for August {Indicate the effect of each variance by selecting for favorable. unfavorable. and no variance] Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the standard oust per unit. Direct materials Total Required 2 ) A manufactured product has the following information for August. Standard Actual Direct materials 2 lbs. per unit 8 $3.00 per 11:. Direct labor 0.5 hours per unit 1'! $20 per hour Overhead $18 per direct labor hour Units manufactured 12,200 Total manufacturing costs $300,400 {1] Compute the standard cost per unit. {2} Compute the total budgeted cost for production in August. {3] Compute the total cost variance for August {Indicate the effect of each variance by selecting for favorable. unfavorable. and no variance] Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the total budgeted cost for production in August. 4.. Required 1 Required 3 ) A manufactured product has the following information for August. Standard Actual Direct materials 2 1bs. per unit @ $3.00 per 1b. Direct labor 0.5 hours per unit @ $20 per hour Overhead $18 per direct labor hour Units manufactured 12, 200 Total manufacturing costs $ 300 , 400 (1) Compute the standard cost per unit. (2) Compute the total budgeted cost for production in August. (3) Compute the total cost variance for August. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the total cost variance for August. Indicate whether the cost variance is favorable, unfavorable or no variance. Cost variance
