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Required information Problem 9.42 Preparation of Master Budget (LO 9-3, 9-4, 9-5) [The following information applies to the questions displayed below.) Fresh Pak Corporation manufactures

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Required information Problem 9.42 Preparation of Master Budget (LO 9-3, 9-4, 9-5) [The following information applies to the questions displayed below.) Fresh Pak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit and vegetables The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. Type of Box 65 pounds 25 pounds 0.80 hour Direct material required per 100 boxes: Paperboard (50.36 per pound) Corrugating medium (50.18 per pound) Direct labor required per 100 boxes (918.00 per hour) 25 pounds 15 pounds 0.40 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 415,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total $ 12,600 89,520 36,000 24,000 19,000 38,000 $219, 120 The following selling and administrative expenses are anticipated for the next year, Salaries and fringe benefits of sales personnel Advertising Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses $120,000 25,000 140,000 41,500 6.500 SANA Next > The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel Advertising Management salaries and fringe benefits clerical wages and fringe benefits Miscellaneous administrative expenses Total $120,000 25,000 140,000 41,500 6,500 $333,000 The sales forecast for the next year is as follows: Box type C Box type P Sales Volume 420,000 boxes 420,000 boxes Sales Price $140.00 per hundred boxes 200.00 per hundred boxes The following inventory information is available for the next year. The unit production costs for each product are exp to be the same this year and next year. Expected Inventory Desired Ending Inventory January 1 December 31 Finished goods: Box type C 15,000 boxes 10,000 boxes Box type P 25,000 boxes 20,000 boxes Raw material: Paperboard 17,500 pounds 7,500 pounds Corrugating medium 7,500 pounds 12,500 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 35 percent. Problem 9-42 Part 1 Required: 1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.) Box C Box P Total Sales (in units) Sales price per unit Sales revenue 0 0 $ $ 0 $

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