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Trying to understand this material so I would greatly appreciate it if you could show extensive work all the way through. Thank you. Hawkins Engineering's
Trying to understand this material so I would greatly appreciate it if you could show extensive work all the way through. Thank you. Hawkins Engineering's management wants to prepare budgets for one of its products, GalaxyRS, for July 2019. The firm sells the product for $800 per unit and has the following expected sales (in units) for these months in 2019: April st 6,000 800 July May tember 4,000 June Augu 5,600 6,500 6, 7,800 Typically, cash sales for Hawkins represent 20% of sales while credit sales represent 80%. Hawkins bills customers on the first day of the month following the month of sale. Experience has shown that 85% of the company's billings will during the month of sale, 10% by the end of the month after the sale and 5% will ultimately be uncollectible. be collected The production process requires the following: Standard Costs: Galaxy-80 RS-360 lbs Direct labor Skill level 1 hours S50/hour Skill level 2 hours S20/hour 4 lbs S1.25/lb $5.00/lb 0.01 0.10 Variable manufacturing overhead is budgeted at S1,200 per batch (of 100 units) plus $80 per direct labor hour. In addition to variable overhead, the firm has a monthly fixed factory overhead of S60,000, of which $25,000 is depreciation expense. The firm pays all manufacturing labor and factory overhead when incurred. The firm's policy is to maintain an ending finished goods inventory each month equal to 10% of the following month's budgeted sales, but in no case less than 500 units. All materials inventories are to be maintained at 5% of the production needs for the next month, but not to exceed 1,000 pounds. The firm expects all inventories at the end of June to be within the guidelines. The nurchase terms for materials are 3/10 n30 Hawkinos
Trying to understand this material so I would greatly appreciate it if you could show extensive work all the way through. Thank you.
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