Robert Brown, Marigold & Brown Fabricators production manager, has just received the companys sales budget for the first quarter:
Robert Brown, Marigold & Brown Fabricators' production manager, has just received the company's sales budget for the first quarter: March January 20,000 4,600 31,000 6,800 Budgeted unit sales Budgeted ending inventory Total units required Beginning inventory Budgeted production February 23,000 6,200 29,200 4,600 24,600 Quarter 74,000 6,800 80,800 3,200 24,600 3,200 37,800 6,200 21,400 31,600 77,600 Its manufacturing overhead budget for the first quarter is as follows: March DLH worked January 4,280 $1.75 February 4,920 $1.75 6,320 $1.75 Quarter 15,520 $1.75 7,490 8,610 11,060 100,000 27,160 300,000 100,000 100,000 VOH per DLH Budgeted VOH Budgeted FOH Total Budgeted MOH Noncash MOH items Depreciation Total Cash MOH cost 107,490 108,610 111,060 327,160 99,000 33,000 $74,490 33,000 $75,610 33,000 $78,060 $228,160 A Overhead Total Std. Cost per unit Ending FG Inventory (units) A Ending FG Inventory ($) ta Cost of Goods Sold Direct Materials used Direct Labor Overhead Joshua plans to have 3,200 finished bricks at a cost of $49,000 in inventory at the beginning of the year. The company applies manufacturing overhead based on direct labor hours, and the current predetermined rates are $12.25 per direct labor hour for fixed manufacturing overhead and $1.75 per direct labor hour for variable manufacturing overhead. Prepare Marigold & Hill's ending inventory and cost of goods sold budget for the first quarter. Assuming that the company has no beginning and ending WIP inventory. (Round unit cost to 2 decimal places, e.g. 5.33 & all other answers to 0 decimal places, e.g. 5,275.) Direct Materials Beginning DM Inventory $ DM Purchases DM used in Production Ending DM Inventory $ Finished Goods Inventory Unit Costs Direct Material $ Direct Labor He also has received the direct materials purchases budget and direct labor budget which were as follows: March January 21,400 February 24,600 Quarter 77,600 April 32,400 31,600 x 6 X 6 x 6 x 6 x 6 194,400 128,400 14,760 189,600 19,440 465,600 19,440 Budgeted production Standard pounds per unit Production needs Budgeted ending inventory Total DM required (lbs.) Beginning inventory Budgeted purchases (lbs.) Standard cost per pound Budgeted purchases cost 485,040 143,160 15.000 147,600 18,960 166,560 14,760 151,800 $1.50 $227,700 209,040 18,960 128,160 $1.50 190,080 $1.50 15,000 470,040 $1.50 $192,240 $285,120 $705,060 March January 21,400 February 24,600 x 0.20 31,600 x 0.20 x 0.20 Budgeted production Standard DLH per unit Total DLH required Standard wage rate Budgeted DL cost Quarter 77,600 x 0.20 15,520 x $20 $310,400 4,280 $20 4,920 * $20 $98,400 6,320 $20 $126,400 $85,600
