Question
Question 1 Swifty Furniture builds high-end hand-made dining tables. Attacus Simmons, the company's owner, has developed the following sales forecast for 2018. 1st Quarter2nd Quarter3rd
Question 1
Swifty Furniture builds high-end hand-made dining tables. Attacus Simmons, the company's owner, has developed the following sales forecast for 2018.
1st Quarter2nd Quarter3rd Quarter4th QuarterForecasted sales (tables)2,5412,7782,9272,276
Because of the time needed to create each table, Swifty maintains an ending Finished Goods Inventory of 20% of the following quarter's budgeted sales. Swifty has been following this inventory policy for several years. The company ended 2017 with 508 tables on hand.
The standard cost card for a table is as follows:
Standard QuantityStandard PriceTotal Standard CostAmerican cherry wood25 board feet$5/board foot$125American cherry turning square (legs)4 squares$9/square36Direct labor12 DLH$16/DLH192Variable overhead12 DLH$58/DLH696Fixed overhead12 DLH$8/DLH96$1,145
Your answer is correct.
Prepare Swifty's production budget for 2018. Assume that the desired ending inventory for 2018 is 519 tables.(Round answers to 0 decimal places, e.g. 5,275.)
Production Budget1stQuarter
2ndQuarter
3rdQuarter
4thQuarter
Annual
Beginning inventory
Total units required
Budgeted production
Budgeted unit sales
Budgeted ending inventory
Beginning inventory
Budgeted unit sales
Total units required
Budgeted production
Budgeted ending inventory
Budgeted ending inventory
Total units required
Beginning inventory
Budgeted Production
Budgeted unit sales
Beginning inventory
Total units required
Budgeted ending inventory
Budgeted unit sales
Budgeted production
Budgeted unit sales
Budgeted ending inventory
Beginning inventory
Budgeted Production
Total units required
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Swifty maintains inventory of American cherry wood equal to 10% of the following quarter's production needs. On December 31, 2017, Swifty's physical inventory count showed 5,555 board feet of American cherry. Due to an anticipated price increase in 2019, managers want to have 10,091 board feet of American cherry wood in inventory on December 31, 2018. Prepare Swifty's 2018 direct materials purchases budget for American cherry wood.(Round answers to 0 decimal places, e.g. 5,275.)
Direct Materials Purchases Budget1stQuarter
2ndQuarter
3rdQuarter
4thQuarter
Annual
Budgeted purchases
Beginning inventory
Budgeted purchases cost
Budgeted ending inventory
Budgeted production
Standard board feet
Standard price per board feet
Production needs
Total DM required
Budgeted purchases
Total DM required
Beginning inventory
Budgeted ending inventory
Budgeted production
Standard price per board feet
Budgeted purchases cost
Production needs
Standard board feet
Production needs
Standard board feet
Budgeted ending inventory
Beginning inventory
Budgeted purchases
Standard price per board feet
Total DM required
Budgeted production
Budgeted purchases cost
Total DM required
Beginning inventory
Budgeted purchases
Budgeted purchases cost
Standard board feet
Standard price per board feet
Budgeted production
Production needs
Budgeted ending inventory
Production needs
Beginning inventory
Budgeted purchases cost
Budgeted purchases
Budgeted production
Budgeted ending inventory
Standard board feet
Standard price per board feet
Total DM required
Total DM required
Standard board feet
Standard price per board feet
Beginning inventory
Budgeted purchases cost
Budgeted purchases
Budgeted production
Production needs
Budgeted ending inventory
Production needs
Budgeted production
Standard price per board feet
Beginning inventory
Budgeted purchases
Budgeted purchases cost
Standard board feet
Budgeted ending inventory
Total DM required
Budgeted purchases cost
Production needs
Budgeted ending inventory
Standard board feet
Budgeted production
Total DM required
Beginning inventory
Budgeted purchases
Standard price per board feet
$
$
$
$
$
Budgeted ending inventory
Total DM required
Standard price per board feet
Budgeted purchases cost
Budgeted purchases
Budgeted production
Production needs
Beginning inventory
Standard board feet
$
$
$
$
$
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Prepare Swifty's direct labor budget for 2018.(Round answers to 0 decimal places, e.g. 5,275.)
Direct Labor Budget1stQuarter
2ndQuarter
3rdQuarter
4thQuarter
Annual
Budgeted production
Standard wage rate
Budgeted DL cost
Total DLH required
Standard DLH per unit
Total DLH required
Standard wage rate
Budgeted DL cost
Budgeted production
Standard DLH per unit
Budgeted production
Standard DLH per unit
Total DLH required
Standard wage rate
Budgeted DL cost
Total DLH required
Budgeted DL cost
Standard wage rate
Budgeted production
Standard DLH per unit
$
$
$
$
$
Budgeted production
Standard DLH per unit
Total DLH required
Standard wage rate
Budgeted DL cost
$
$
$
$
$
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Assume that because of the skill level required to make the tables, Swifty cannot easily hire additional workers to handle peaks in demand. Consequently, the company maintains a steady workforce of 60 employees and guarantees each worker 500 hours per quarter. For any additional time required to complete the scheduled production, these same workers earn 1.5 times their normal hourly rate. Prepare Swifty's direct labor budget for 2018.(Round overtime rate to 1 decimal place, e.g. 52.7 and all other answers to 0 decimal places, e.g. 5,275.)
Direct Labor Budget1stQuarter
2nd Quarter
3rd Quarter
4thQuarter
Annual
Overtime rate
DLH needed
Overtime cost
Regular hours cost
DLH available
Overtime hours
Budgeted DL cost
Overtime hours
Regular hours cost
Overtime cost
Overtime rate
Budgeted DL cost
DLH available
DLH needed
Regular hours cost
Budgeted DL cost
Overtime cost
DLH needed
Overtime rate
DLH available
Overtime hours
Budgeted DL cost
Overtime hours
Overtime rate
DLH available
Overtime cost
DLH needed
Regular hours cost
$
$
$
$
$
Overtime cost
Regular hours cost
Overtime rate
Overtime hours
Budgeted DL cost
DLH needed
DLH available
$
$
$
$
$
Regular hours cost
DLH available
Overtime hours
Overtime rate
Overtime cost
Budgeted DL cost
DLH needed
Overtime cost
DLH available
Regular hours cost
Budgeted DL cost
Overtime hours
DLH needed
Overtime rate
$
$
$
$
$
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