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Scarlett Company Master Budget Scarlett Company is preparing its annual budgets for the year. Accounting assistants furnished the information shown below for its single product.
| Scarlett Company Master Budget | |||||||||
| Scarlett Company is preparing its annual budgets for the year. Accounting assistants furnished the | |||||||||
| information shown below for its single product. | |||||||||
| Sales budget: | |||||||||
| Anticipated volume in units | 400,000 | ||||||||
| Unit selling price | $20.00 | ||||||||
| Production budget: | |||||||||
| Desired ending finished goods units | 30,000 | ||||||||
| Beginning finished goods units | 25,000 | ||||||||
| Direct materials budget: | |||||||||
| Direct materials per unit (pounds) | 2 | ||||||||
| Desired ending direct materials (pounds) | 30,000 | ||||||||
| Beginning direct materials (pounds) | 40,000 | ||||||||
| Cost per pound | $3.00 | ||||||||
| Direct labor budget: | |||||||||
| Direct labor hours per unit | 0.4 | ||||||||
| Direct labor rate per hour | $12.00 | ||||||||
| Please prepare the following budgets for the year: | |||||||||
| Sales | |||||||||
| Production | |||||||||
| Direct materials | |||||||||
| Direct labor | |||||||||
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
