Thunder company expects to sell 18,000 units in January. 24,000 units in February. 30,000 units in March. 34,000 units in April and 36,000 units in May. The sales price is $34 per unit. Please review the inputs in blue and answer budget 7
Jan 19,200 3.50 67,200 Feb 25,200 3.50 88,200 Mar 30,800 3.50 107,800 $ 01 Total 75,200 2.50 263,200 $ $ $ 52 Budget #5: Manufacturing Overhead Budget 53 Budgeted units to be produced 54 VOH cost per unit 55 Budgeted VOH 56 Budgeted FOH 57 Depreciation 58 Salaries and maintenance 59 Total budgeted FOH 50 Budgeted manufacturing overhead costs 20,000 50,000 70,000 137,200 20,000 50,000 70,000 158,200 20,000 50,000 70,000 177,800 60,000 150,000 210,000 473,200 $ $ $ 9,600 12,600 15,400 52 Direct labor hours (DLHr) 53 Predetermined overhead allocation rate per DLHO 37,600 12.59 $ 55 Thunder Creek Company uses the first-in, first-out (FIFO) inventory costing method. 56 The Beginning Finished Goods Inventory is $86,400 consisting of 3,600 units. 57 Begin by calculating the projected cost to produce cach unit in 2018 based on projected sales. (Hint: In "Cost per unit" table, cell references come from Direct Materials, Direct Labor, and Manufacturing Overhead budgets.) 58 Use'=ROUND' function to round the fixed manufacturing overhead cost per unit to two decimal places. 59 Prepare a cost of Goods Sold Budget. (Hint: Units per month calculated using cell references to both sales budget and production budget.) Cost per unit F1 Direct material cost per unit $ 8.00 2 Direct labor cost per unit 10.00 3 Manufacturing overhead cost per unit 6.30 -4 Total projected manufacturing cost per unit $ 24.30 20 26 2018 Jan Feb Mar 01 Total 86,400.00 $ 86,400.00 $ 27 Budget #6: Cost of Goods Sold Budget F8 Beginning Finished Goods Inventory, 3,600 units. -9 Units produced and sold in 2018 B0 Cost per unit 31 Units per month B2 Total cost of units produced and sold in 2018 33 Total budgeted cost of goods sold 24.30 14,400 349,920 436,320 24.30 24,000 583,200 669,600 24.30 30,000 729,000 815,400 $ 1,662,120 1,921,320 $ $ $ Thunder Creek Company's variable supplies expense per month is $3.00 per unit. The fixed selling and administrative expenses per month consist of Salaries B5 $245,000; Advertising: $30.000; and Depreciation: $28,000 36 Prepare a Selling and Administrative Expense Budget. (When entering answers in the selling and administrative budget, use the sales budget for your cell references.) 2018 28 Budget #7: Selling and Administrative Expense Budget Jan Feb Mar 01 Total 39 Salaries expense $ 245,000 S 245,000 $ 245,000 $ 735,000 90 Advertising expense 30,000 30,000 30,000 90,000 31 Depreciation expense 28,000 28,000 28,000 84,000 32 Supplies expense 93 Total budgeted 5&A expense
