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XYZ company make shoes of two kinds that are athletic shoes and climbing shoes. The athletic shoes made of fabric sole and the climbing shoes

XYZ company make shoes of two kinds that are athletic shoes and climbing shoes. The athletic shoes made of fabric sole and the climbing shoes have fabriccovered leather sole. XYZ preparing its budget for Mar 2020 and has estimated sales based on past experience. The information is presented below: Input prices Direct materials: Fabric $5.25 per yard Leather $7.5 per square feet Direct manufacturing labor $16 per direct manufacturing labor hours Input quantities per unit of output (per pair of shoe) athletic climbing Direct materials: Fabric 1.2 yard 1.4 yard Leather 0 2 s.f. Direct manufacturing labor 5 hours 7 hours Setup-hours per batch 3 hours 4 hours Inventory information (Direct material) Fabric Leather Beginning inventory 620 yards 800 s.f Target ending inventory 380 yards 295 s.f Cost of beginning inventory $3,219 $6,060 XYZ account for direct material using FIFO cost flow assumption. Sales and inventory information, finished goods athletic climbing Expected sales in units (pair of shoe) 2,000 3,000 Selling price $120 $195 Target ending inventory in units 400 600 Beginning inventory in units 250 650 Beginning inventory in dollar $23,250 $92,000 XYZ account for direct material using FIFO cost flow assumption. All the shoes are made in batch of 50 pairs of shoe. XYZ incurs manufacturing overhead costs of marketing and general administration, and shipping cots. Besides materials and labor, manufacturing cost processing and inspection costs. XYZ ships 40 pair of shoe per shipment. XYZ uses activity based costing and has classified all overhead costs for the month of Mar as shown in the following table: Cost type Activity Rates Manufacturing: Setup Setup-hours $18 per set-up per batch Processing Director labor hours $1.8 per direct labor hour Inspection Number of shoes $1.35 per pair per batch Non-manufacturing: Marketing and general administration Sales revenue 8% Shipping Number of shipments $15 per shipment Prepare the master budget that includes revenue, contribution margin, operating income and all type of costs?

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