Required: Prepare each of the following budgets for Scottsdale Styles for the year ended December 31, 2016:
5. Factory overhead budget.
6. Cost of goods sold budget.
Please use this format:
P7-4 Sales, production, direct materials, direct labor, and factory overhead budgets Scottsdale Styles Inc.'s budgeted unit sales for the year 2016 were: Tables 30,000 Chairs.... 120,000 The budgeted selling price for tables was $175 per table, and it was $75 per chair. The beginning finished goods inventories were expected to be 1,000 tables and 4,000 chairs, for a total cost of $240,000, with desired ending inventories at 1,500 and 6,000, respectively, with a total cost of $360,000. There was no anticipated beginning or ending work-in-process inventory for either item. The standard materials quantities for each item were as follows: Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or Chapter sed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions re Rattan.. Table Chair 10 yd 6 yd Binding cane 6 yd 3 yd The purchase prices of rattan and binding cane were $5 and $3 per yard, respectively. The desired ending inventories for rattan and binding cane were 51,000 and 25,500 yards, respectively. The estimated beginning inventories for rattan and binding cane were 34,000 and 17,000 yards, respectively. The direct labor hours required for each type of item were as follows: Assembly Finishing Department Department Table. 0.50 0.25 Chair. The direct labor rate for each department is as follows: 0.25 0.10 Assembly Department $15 per hour Finishing Department ... $13 per hour Budgeted factory overhead costs for 2016 were as follows: $ 98,500 132,200 Indirect materials. Indirect labor... Depreciation of building and equipment Power and light ... Total ....... 57,500 92,200 $380,400 Total P7-4 Continued 4. Wicker Works, Inc. Direct Labor Budget For the Year Ended December 31, 2013 Department Assembly Finishing Hours required for production: Tables: 30,500 x 5 30,500 x 25 Chairs: 122.000 x 25 122.000 x 10 Total. 45,750 19.825 Hourly rate $15 $13 Total direct labor cost 5943.975 5. Wicker Works, Inc. Factory Overhead Budget For the Year Ended December 31, 2013 Indirect materials Indirect labor...... Depreciation of building and equipment... Power and light.... Total factory overhead cost $380.400 Wicker Works, Inc. Cost of Goods Sold Budget For the Year Ended December 31, 2013 Finished goods inventory. Jan. 1 $ 240,000 Direct materials inventory, Jan. 11 Direct materials purchases. Total direct materials available... $7,163,500 Less direct materials inventory. Dec. 312 Cost of direct materials used. $ 6,832,000 Direct labor Factory overhead Cost of goods manufactured Cost of goods available for sale $8.396,375 Less finished goods inventory, December 31 Cost of goods sold $8.036.375
