Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Budget Director of SunFun Inc., in consultation with other members of executive management, has gathered the following data for use in developing a master

image text in transcribed
image text in transcribed
image text in transcribed
The Budget Director of SunFun Inc., in consultation with other members of executive management, has gathered the following data for use in developing a master budget for operations and a cash budget for May. Use the following data to set up, in good form, the following budgets for May for SunFun Inc.: Sales Budget Production Budget Direct Materials Purchases Budget Direct Labor Cost Budget Cost of Goods Sold Budget Budgeted Income Statement Cash Budget Be sure each budget has a heading identifying the company name, the budget title, and the time period. 152OSUN Estimated sales for May Product Units Sell Price per Unit 35,000 25,000 Estimated inventories, May 1 Material Pounds 4,000 3,500 Cost per Unit Units 3,000 2,700 Cost of Work in Process 5/1$ 36,800 Estimated inventories, May 31 Material Pounds 3,000 2,500 Product Cost per Unit Units 2,500 2,000 Cost of Work in Process, 5/31 $ 37,930 Direct Materials used in production Pounds per Pounds per Material unit of Y unit of Z 10. 73.5 12 18 Unit costs for direct materials Cost per pound Materia Direct labor requirements Product Department 1 Department 2 Hours per unit S Rate per hour Hours per unit Rate per hour 0.4 12 0.6 120 .25 0.15 Factory overhead actual costs Estimated total $ 295,000 Operating expenses Estimated total $ 632,500 Estimated income tax rate 20% 8,200 80% 80% 90% Cash estimates for May: Estimated cash balance, 5/1$ Sales expected to be collected in cash in May Direct materials purchases expected to be paid in May Direct labor costs expected to be paid in May Factory overhead costs expected to be paid in May Operating expenses expected to be paid in May Income taxes expected to be paid in May No other cash receipts or payments expected in May Desired cash balance, 5/31 $ 75% 70% 30% 90,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Conflict Management And Negotiation Skills For Internal Auditors

Authors: Joan Pastor, PhD

1st Edition

0894136089, 978-0894136085

More Books

Students also viewed these Accounting questions

Question

Distinguish between filtering and interpreting. (Objective 2)

Answered: 1 week ago