Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question: Please use the format below to answer A-F: 39. Budgeting for Sales, Production, Direct Materials, Direct Labor, and Manufacturing Overhead. Sports Bars Inc., produces

Question:

image text in transcribed

Please use the format below to answer A-F:

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

39. Budgeting for Sales, Production, Direct Materials, Direct Labor, and Manufacturing Overhead. Sports Bars Inc., produces energy bars and sells them by the case (1 unit = 1 case). Information to be used for the operating budget this coming year follows Average sales price for each case is estimated to be $25. Unit sales for this coming year, ending December 31, are expected to be as follows First quarter 80,00o Second quarter 84,000 Third quarter 88,000 Fourth quarter 97,000 Finished goods inventory is maintained at a level equal to 15 percent of the next quarter's sales. Finished goods inventory at the end of the fourth quarter budget period is estimated to be 13,000 units. Each unit of product requires 5 pounds of direct materials, at a cost of $3 per pound. Management prefers to maintain ending raw materials inventory equal to 10 percent of next quarter's materials needed in production. Raw materials inventory at the end of the fourth quarter budget period is estimated to be 43,0oo pounds Each unit of product requires o.10 direct labor hours at a cost of $14 per hour Variable manufacturing overhead costs are - - Indirect materials Indirect labor Other $0.20 per unit $o.15 per unit $0.10 per unit Fixed manufacturing overhead costs per quarter are . Salaries $80,0o0 Other $70,000 Depreciation $55,625 Required a. Prepare b. Prepare a production budget using the format shown in Figure 9.4 c. Prepare a direct materials purchases budget using the format shown in Figure 9.5. d. Prepare a direct labor budget using the format shown in Figure 9.6 e. Prepare a manufacturing overhead budget using the format shown in Figure 9.7. Round to the nearest dollar f. As the production manager, what concerns, if any, do you have about production requirements for each of the four a sales budget using the format shown in Figure 9.3. quarters

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CIA Part 1 Essentials Of Internal Auditing 2022

Authors: MUHAMMAD ZAIN

1st Edition

B09PHFC28N, 979-8794951356

More Books

Students also viewed these Accounting questions

Question

What are the APPROACHES TO HRM?

Answered: 1 week ago

Question

4 How can you create a better online image for yourself?

Answered: 1 week ago