Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Shimmer Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 17,000 Knox lamps and 6,000 Ayer lamps in
Shimmer Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 17,000 Knox lamps and 6,000 Ayer lamps in 2017. The following data are available for the year 2017. 2 (Click the icon to view the information.) (Click the icon to view the December 31, 2017 production budget in units.) Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3A); (b) the direct materials purchase budget quantity and dollars (label it Schedule 3B); and (c) the direct manufacturing labor costs budget (label it Schedule 4) for the year ending December 31, 2017 17,000 yards 17,000 lbs. 12,000 29,000 12,000 yards Ibs Ibs 29.000 yards Data Table Physical Units Budget Direct materials required for Knox lamps Direct materials required for Ayer lamps Total quantity of direct materials to be used Cost Budget Available from beginning direct materials inventory (under a FIFO cost-flow assumption) Metal Fabric To be purchased and used this period Metal $ 45,000 $ 20,000 Direct materials Metal Fabric A Data Table - X $ 3 per pound (same as in 2016) 4 per yard (same as in 2016) $ 22 per hour 42.000 Direct manufacturing labor Fabric 96,000 Content of Each Product Unit S 87.000 $ 116,000 $ 203.000 Schedule 2: Production Budget (in Units) for the Year Ending December 31, 2017 Direct materials to be used this period Product Knox Ayer Knox Ayer Metal (b). Calculate the direct materials purchase budget in quantity and dollars (label it Schedule 3B) for the year ending December 31, 2017 Schedule 3B: Direct Material Purchases Budget for the Year Ending December 31, 2017 Materials 1 pounds 1 yard 0.1 hours 2 pounds 2 yards 0.2 hours 17.700 2,100 Fabric Direct manufacturing labor 6,000 1,100 Budgeted units sales Add target ending finished goods inventory Total required units Deduct beginning finished goods inventory 19.800 2,800 7.100 1,100 6.000 Metal Fabric Total 17,000 Units of finished goods to be produced Direct Materials Metal Fabric 15,000 pounds 5,000 yards 13.000 pounds 3,000 yards lbs yards Beginning inventory Target ending inventory lbs Print Done yards yards lbs Physical Units Budget To be used in production Add target ending inventory Total requirements Deduct beginning inventory Purchases to be made Cost Budget Metal lbs yards Print Done lbs. yards Fabric Direct materials to be purchased this period Enter any number in the edit fields and then click Check Answer. 1 pemaining Clear All Final Check
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started