URGENT, PLEASE HELP ASAP DUE SOON!
Ham Inc. has gathered the following budgeting information for next year and has asked you to prepare their master budget. Sales for the final quarter of the prior year total 800 units. Expected sales (in units) for the current year are: 720 (Quarter 1), 480 (Quarter 2), 640 (Quarter 3), and 640 (Quarter 4). Sales for the first quarter of the following year total 960 units. The selling price is $660 per unit in the first three quarters of the year, and $690 per unit in the final quarter. a. Company policy calls for a given quarter's ending finished goods inventory to equal 50% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 360 units, which complies with the policy. The product's manufacturing cost is $191 per unit, including per unit costs of $112 for materials (8 lbs. at $14 per lb.), $60 for direct labor (3 hours x $20 direct labor rate per hour), $15 for variable overhead, and $4 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $4,200; factory utilities, $5,200, and other factory overhead of $1,000. : 14 b. es Company policy also calls for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 2,400 Ibs of materials, which complies with the policy. The company expects to have 3,840 lbs. of materials in inventory at year-end. The company has no work in process inventory at the end of any quarter. C. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $52,000 in the first three quarters of the year, and $55,000 in the final quarter. e problem 3 i Saved Quarterly general and administrative expenses include $22,000 administrative salaries, rent expense of $13,000 per quarter, insurance expense of $10,000 per quarter, straight- line depreciation of $10,000 per quarter, and 1% monthly interest on the $400,000 long-term note payable (12% annually) e. f. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Sales Budget Production Budget Admin Exp Budget Direct Mtls Budget Selling Exp Budget Cost of Direct Lbr Factory OH Budget Income Goods Sold Statement Budget Requirement: Prepare the Sales Budget for Ham Inc..Sales for the final quarter of the prior year total 800 units. Expected sales (in units) for the current year are: 720 (Quarter 1), 480 (Quarter 2), 640 (Quarter 3), and 640 (Quarter 4). Sales for the first quarter of the following year total 960 units. The selling price is $660 per unit in the first three quarters of the year, and $690 per unit in the final quarter. Show less A Ham Inc. Sales Budget 2018 First Qtr. Second Qtr. Third Qtr. Fourth Qtr. Total Budgeted sales (units) Total budgeted sales (dollars) Sales Budget Production Budget Requirement: Prepare the production budget for Ham Inc.. Company policy calls for a given quarter's ending finished goods inventory to equal 50% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 360 units, which complies with the policy. Expected sales (in units) for the current year are: 720 (Quarter 1), 480 (Quarter 2), 640 (Quarter 3), and 640 (Quarter 4). Sales for the first quarter of the following year total 960 units. Show less A Ham Inc. Production Budget For the year ended December 31, 2018 First Qtr Second Qtr. Third Qtr. Fourth Qtr. Total Ratio of inventory to future sales Budgeted ending inventory (units) Required units of available production Units to be produced
