the picture below is my question. please answer all parts of #8 and #9. i will rate.
this is the added indormation needed to answer this question.
below is #8
below is #9
below is problems 5-7, I never answered 6-7 because I split of my question into 2 and posted it on chegg. because no one answers the full questions. please help with all questions! i will rate!
Part B. Budgets During July of the current year, the management of Quivers Inc. asked the controller, Robin, to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases of jet wax at $100 per case for August. Inventory planning information is provided as follows: Finished Goods Inventory Estimated finished goods inventory, August 1 Desired finished goods inventory, August 31 Cases 300 175 Cost $ 12,000.00 $ 7,000.00 Materials Inventory Cream Base (oz.) 250 1,000 Estimated materials inventory, August 1 Desired materials inventory, August 31 Oils (oz.) 290 360 Bottels (02.) 600 240 There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there was no change in the cost per unit or estimated units per case operating data from January. Instructions 8. Prepare the August factory overhead cost budget. 9. Prepare the August budgeted income statement, including selling expenses. Cost per Case per Unit DIRECT MATERIALS Cost Units Behavior Variable 100 oz. Variable 30 oz. Variable 12 bottles Direct Materials Cost per Case $ 2.00 9.00 Crearn base Natural oils Bottle (8-oz) $0.02 0.30 0.50 6.00 $17.00 DIRECTLABOR Time Labor Rate per Case per Hour Department Mixing Cost Behavior Variable Variable 20 min. 5 25 min. $18.00 14.40 Direct Labor Cost per Case $6.00 1.20 $7.20 Filling FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $ 600 Facility lease Fixed 14,000 Equipment depreciation Fixed 4,300 Supplies Fixed 660 $19,560 Requirement #8: Develop the factory overhead cost budget. Quivers Inc. Factory Overhead Cost Budget For the Month Ended August 31 Fixed Variable Total Utilities Facility Lease Equipment Depreciation Supplies Total factory overhead cost Cost Cases Cost Total Fixed Cost [from Question 3] Variable Utility Cost Requirement #9 Quivers Inc. Budgeted Income Statement For the Month Ended August 31 Sales Finished goods inventory, August 1 Direct materials: Direct materials inventory, August 1 Direct materials purchases (from Question 6] Cost of direct materials available for use Less direct materials inventory, August 31 Cost of direct materials placed in production Direct labor [from Question 7] Factory overhead [from Question 8] Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, August 31 Cost of goods sold Gross profit Selling expenses Income from operations Units x Price Total Sales Selling Expenses Cream Base (oz.) Oils (oz) Bottels (oz.) Total Direct materials inventory, August 1 Direct materials inventory, August 31 Rate Cream Base (oz.) Oils (oz.) Bottels (oz.) Requirement #6: Develop the direct materials purchases budget. Quivers Inc. Direct Materials Purchases Budget For the Month Ended August 31 Cream Base Natural (oz.) Oils (oz.) Bottles (bottles) Total Units required for production Plus desired ending inventory Total units required Less estimated beginning inventory Total materials to be purchased * Unit price Total direct materials to be purchased Raw Materials Units x Volume = Total Cream Base Natural Oils Bottles Requirement #7: Develop the direct labor cost budget. Quivers Inc. Direct Labor Cost Budget For the Month Ended August 31 Mixing Filling Total Hours required for production of: Ophelia Wax Product Hourly rate Total direct labor cost Labor Production Time / Hour = Units x Total Mixing Filling REQUIREMENT #5: Develop the production budget. Quivers Inc. Production Budget For the Month Ended August 31 Expected cases to be sold Plus desired ending inventory Total units required Less estimated beginning inventory Cases 1,500 175 1,675 300 Total units to be produced 1,375 1 Using High-low method, Variable cost per unit = (Total cost at highest production - Total cost at lowest production)/(highest production - lowest production) Variable cost per unit = ($740 - $600)/(1,200 - 500) = $140/700 = $0.20 Fixed cost at highest production = Total cost - variable cost = $740 - (1,200 * $0.2) = $740 - $240 = $500 High-Low Method Variable Cost per Unit Difference in Total cost $140.00 7 7 Difference in Production 700 $0.20 = Variable Cost = per Unit + Total Cost $740.00 $600.00 Units of Production 1200 500 + High Point Low Point $0.20 $0.20 Fixed Costs $500.00 $500.00 + 2 Contribution Margin per case = Selling price per case - Variable cost per case Selling price per case $100.00 Less: Variable cost per case Direct materials cost per case $17.00 Direct Labor Cost per case $7.20 Utilities variable overhead per case $0.20 Selling commission per case $20.00 $44.40 Contribution Margin per case $55.60 3 Calculation of Fixed costs per month Utilities Fixed cost $500.00 Facility lease $14,000.00 Equipment depreciation $4,300.00 Supplies $660.00 Total Fixed costs $19,460.00 4 Break-even number of cases per month = Fixed costs per month/Contribution Margin per case = $19,460/$55.6 = 350 cases Thus, the break-even number of cases per month = 350 cases Part B. Budgets During July of the current year, the management of Quivers Inc. asked the controller, Robin, to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases of jet wax at $100 per case for August. Inventory planning information is provided as follows: Finished Goods Inventory Estimated finished goods inventory, August 1 Desired finished goods inventory, August 31 Cases 300 175 Cost $ 12,000.00 $ 7,000.00 Materials Inventory Cream Base (oz.) 250 1,000 Estimated materials inventory, August 1 Desired materials inventory, August 31 Oils (oz.) 290 360 Bottels (02.) 600 240 There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there was no change in the cost per unit or estimated units per case operating data from January. Instructions 8. Prepare the August factory overhead cost budget. 9. Prepare the August budgeted income statement, including selling expenses. Cost per Case per Unit DIRECT MATERIALS Cost Units Behavior Variable 100 oz. Variable 30 oz. Variable 12 bottles Direct Materials Cost per Case $ 2.00 9.00 Crearn base Natural oils Bottle (8-oz) $0.02 0.30 0.50 6.00 $17.00 DIRECTLABOR Time Labor Rate per Case per Hour Department Mixing Cost Behavior Variable Variable 20 min. 5 25 min. $18.00 14.40 Direct Labor Cost per Case $6.00 1.20 $7.20 Filling FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $ 600 Facility lease Fixed 14,000 Equipment depreciation Fixed 4,300 Supplies Fixed 660 $19,560 Requirement #8: Develop the factory overhead cost budget. Quivers Inc. Factory Overhead Cost Budget For the Month Ended August 31 Fixed Variable Total Utilities Facility Lease Equipment Depreciation Supplies Total factory overhead cost Cost Cases Cost Total Fixed Cost [from Question 3] Variable Utility Cost Requirement #9 Quivers Inc. Budgeted Income Statement For the Month Ended August 31 Sales Finished goods inventory, August 1 Direct materials: Direct materials inventory, August 1 Direct materials purchases (from Question 6] Cost of direct materials available for use Less direct materials inventory, August 31 Cost of direct materials placed in production Direct labor [from Question 7] Factory overhead [from Question 8] Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, August 31 Cost of goods sold Gross profit Selling expenses Income from operations Units x Price Total Sales Selling Expenses Cream Base (oz.) Oils (oz) Bottels (oz.) Total Direct materials inventory, August 1 Direct materials inventory, August 31 Rate Cream Base (oz.) Oils (oz.) Bottels (oz.) Requirement #6: Develop the direct materials purchases budget. Quivers Inc. Direct Materials Purchases Budget For the Month Ended August 31 Cream Base Natural (oz.) Oils (oz.) Bottles (bottles) Total Units required for production Plus desired ending inventory Total units required Less estimated beginning inventory Total materials to be purchased * Unit price Total direct materials to be purchased Raw Materials Units x Volume = Total Cream Base Natural Oils Bottles Requirement #7: Develop the direct labor cost budget. Quivers Inc. Direct Labor Cost Budget For the Month Ended August 31 Mixing Filling Total Hours required for production of: Ophelia Wax Product Hourly rate Total direct labor cost Labor Production Time / Hour = Units x Total Mixing Filling REQUIREMENT #5: Develop the production budget. Quivers Inc. Production Budget For the Month Ended August 31 Expected cases to be sold Plus desired ending inventory Total units required Less estimated beginning inventory Cases 1,500 175 1,675 300 Total units to be produced 1,375 1 Using High-low method, Variable cost per unit = (Total cost at highest production - Total cost at lowest production)/(highest production - lowest production) Variable cost per unit = ($740 - $600)/(1,200 - 500) = $140/700 = $0.20 Fixed cost at highest production = Total cost - variable cost = $740 - (1,200 * $0.2) = $740 - $240 = $500 High-Low Method Variable Cost per Unit Difference in Total cost $140.00 7 7 Difference in Production 700 $0.20 = Variable Cost = per Unit + Total Cost $740.00 $600.00 Units of Production 1200 500 + High Point Low Point $0.20 $0.20 Fixed Costs $500.00 $500.00 + 2 Contribution Margin per case = Selling price per case - Variable cost per case Selling price per case $100.00 Less: Variable cost per case Direct materials cost per case $17.00 Direct Labor Cost per case $7.20 Utilities variable overhead per case $0.20 Selling commission per case $20.00 $44.40 Contribution Margin per case $55.60 3 Calculation of Fixed costs per month Utilities Fixed cost $500.00 Facility lease $14,000.00 Equipment depreciation $4,300.00 Supplies $660.00 Total Fixed costs $19,460.00 4 Break-even number of cases per month = Fixed costs per month/Contribution Margin per case = $19,460/$55.6 = 350 cases Thus, the break-even number of cases per month = 350 cases
