What is the budgeted amount of sales dollars?
What is budgeted cost of goods sold?
What is the budgeted selling & administrative cost?
What is budgeted net income?
What is the expected balance at the end of the quarter of raw materials (in dollars)?
What is the expected balance at the end of the quarter of finished goods (in dollars)?
Space Company has developed the following standards relating to the production of their finished units: Direct Materials, 5 pounds per unit @ $8.00 per pound Direct Labor, 7 hours per unit @ $16 per labor hour Variable Overhead, 4 machine hours per unit @ $9 per machine hour Fixed overhead costs are estimated at $508,200 each quarter. The expected selling price is $400 per unit. Selling and administrative costs are expected to be $8 per unit variable and $620,000 fixed each quarter. The following sales forecast is available for the year 2020: First Quarter 9,000 units; Second Quarter 11,000 units; Third Quarter 13,000 units; and Fourth Quarter 12,000 units. The expected sales in the First Quarter of the year 2021 are 12,000 units. Management policy is to maintain a finished goods inventory equal to 40% of the next quarter's sales and a raw materials inventory equal to 30% of the next quarter's production requirements. The beginning inventories of the first quarter of the year 2020 are expected to meet these same requirements. A. Total 45,000 Prepare a production budget by quarters for the year 2020. PRODUCTION BUDGET Quarter 1 Unit sales 9,000 Plus: desired ending FG 4,400 Total units needed 13,400 Less: beginning FG 3,600 Production required 9,800 Quarter 2 11,000 5,200 16,200 4,400 11,800 Quarter 3 13,000 4,800 17,800 5,200 12,600 Quarter 4 12,000 4,800 16,800 4,800 12,000 46,200 B. Total Prepare a direct materials purchase budget for the first TWO quarters of the vear 2020 only. DIRECT MATERIALS PURCHASE BUDGET Quarter 1 Quarter 2 Quarter 3 Quarter 4 Units to be produced 9,800 11,800 12,600 Direct materials required 49000 59000 63000 Add: expected ending inventory 17,700 18,900 66,700 77,900 less: opening balance 66,700 17,900 Direct material purchase 52,000 60,200 Cost price 8 8 Direct material purchase $416,000.00 $481,600.00 C. 462000 units 184800 2032800 11 199 D. Compute the following amounts: 1. What is the budgeted ANNUAL production for the year 2020? 2. What are the budgeted ANNUAL machine hours needed for production for the year 2020? 3. What are the budgeted ANNUAL fixed overhead costs for the year 2020? 4. Based on machine hours, what is the pre-determined fixed overhead rate for the year 2020? 5. What is the total expected cost of a finished unit? Compute the following amounts for the FIRST quarter of the year 2020 only: 1. What is the budgeted direct labor cost? 2. What is the budgeted variable overhead cost? 3. What is the budgeted fixed overhead cost? 4. What dollar amount of fixed overhead cost will be applied to production? 5. What is the budgeted amount of sales dollars? 6. What is budgeted cost of goods sold? 7. What is the budgeted selling & administrative cost? 8. What is budgeted net income? 9. What is the expected balance at the end of the quarter of raw materials (in dollars)? 10. What is the expected balance at the end of the quarter of finished goods (in dollars)? 1097600 352800 1128200 508200 3600000
