Question
Sheridan Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for
Sheridan Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2020.
January
February
March
April
May
Estimated unit sales10,70011,1008,3008,7008,800Sales price per unit$50.50$47.60$47.60$47.60$47.60Direct labor hours per unit2.02.01.61.61.6Wage per direct labor hour$8$8$8$9$9
Sheridan has a labor contract that calls for a wage increase to $9 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1.
Sheridan expects to begin the year with 16,250 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 50% of the second following month's sales.
Prepare your production budget for Sheridan Company by month and for the first quarter of the year.
SHERIDANCOMPANY
Production Budget
For the Year Ending March 31, 2020
For the Quarter Ending March 31, 2020
March 31, 2020
Jan
Feb
Mar
Total
Required Production Units
Direct Materials Purchases
Desired Ending Finished Goods Unit
Direct Materials Per Unit
Beginning Direct Materials
Total Materials Required
Total Required Units
Expected Unit Sales
Beginning Finished Goods Unit
Desired Ending Direct Materials
Add
Less
:
Desired Ending Direct Materials
Required Production Units
Desired Ending Finished Goods Unit
Direct Materials Per Unit
Direct Materials Purchases
Expected Unit Sales
Total Materials Required
Total Required Units
Beginning Finished Goods Unit
Beginning Direct Materials
Expected Unit Sales
Direct Materials Per Unit
Direct Materials Purchases
Required Production Units
Beginning Direct Materials
Desired Ending Finished Goods Unit
Beginning Finished Goods Unit
Total Required Units
Desired Ending Direct Materials
Total Materials Required
Add
Less
:
Beginning Direct Materials
Desired Ending Direct Materials
Required Production Units
Direct Materials Per Unit
Desired Ending Finished Goods Unit
Direct Materials Purchases
Expected Unit Sales
Total Materials Required
Total Required Units
Beginning Finished Goods Unit
Direct Materials Per Unit
Direct Materials Purchases
Beginning Finished Goods Unit
Beginning Direct Materials
Expected Unit Sales
Required Production Units
Total Required Units
Total Materials Required
Desired Ending Direct Materials
Desired Ending Finished Goods Unit
Prepare your direct labor budget for Sheridan Company by month and for the first quarter of the year. The direct labor budget should include direct labor hours.(Round Direct labor hours per unit answers to 1 decimal place, e.g. 52.7.)
SHERIDANCOMPANY
Direct Labor Budget
For the Year Ending March 31, 2020
For the Quarter Ending March 31, 2020
March 31, 2020
Jan
Feb
Mar
Total
Beginning Materials Inventory
Cost Per Pound
Total Pounds Required for Production
Direct Labor Time (Hours) Per Unit
Total Required Direct Labor Hours
Direct Materials Per Unit
Direct Materials Purchases
Total Cost of Direct Materials Purchases
Desired Ending Inventory
Direct Labor Cost Per Hour
Units to be Produced
Total Direct Labor Cost
Total Materials Required
Total Required Direct Labor Hours
Total Direct Labor Cost
Beginning Materials Inventory
Direct Labor Time (Hours) Per Unit
Cost Per Pound
Units to be Produced
Desired Ending Inventory
Direct Materials Per Unit
Total Pounds Required for Production
Direct Materials Purchases
Direct Labor Cost Per Hour
Total Cost of Direct Materials Purchases
Total Materials Required
Total Direct Labor Cost
Direct Labor Cost Per Hour
Direct Labor Time (Hours) Per Unit
Total Required Direct Labor Hours
Total Pounds Required for Production
Units to be Produced
Direct Materials Per Unit
Direct Materials Purchases
Total Cost of Direct Materials Purchases
Desired Ending Inventory
Beginning Materials Inventory
Total Materials Required
Cost Per Pound
Total Direct Labor Cost
Direct Materials Purchases
Beginning Materials Inventory
Total Cost of Direct Materials Purchases
Total Materials Required
Total Required Direct Labor Hours
Total Pounds Required for Production
Units to be Produced
Cost Per Pound
Direct Materials Per Unit
Desired Ending Inventory
Direct Labor Cost Per Hour
Direct Labor Time (Hours) Per Unit
$
$
$
Total Pounds Required for Production
Total Required Direct Labor Hours
Desired Ending Inventory
Total Cost of Direct Materials Purchases
Direct Labor Cost Per Hour
Cost Per Pound
Direct Labor Time (Hours) Per Unit
Direct Materials Per Unit
Direct Materials Purchases
Total Direct Labor Cost
Total Materials Required
Units to be Produced
Beginning Materials Inventory
$
$
$
$
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
