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You have been asked to review the information of Deck Corp. and prepare elements of the master budget for the year ending December 2013. Given:
You have been asked to review the information of Deck Corp. and prepare elements of the master budget for the year ending December 2013. Given: A) Balance Sheet: Deck Corp Balance Sheet December 31, 2012 ASSETS LIABILITIES AND EQUITIES Current Assets: Current Liabilities: Cash... $ 76,153 Accounts payable....................; $ 23,451 Accounts receivable. 26,000 Inventory: Equity: Direct Materials (1,600 kg @ $5)...... 8,000 Finished Goods (7,400 @ $5.516).... 24,268 Contributed capital... 151,746 134,421 Retained earnings...................." 169,224 Capital Assets: Total equity...... 320,970 Manufacturing property & equipment.. 320,000 Less: accumulated amortization......... 110,000 210,000 Total Assets....... $ 344,421 Total Liabilities and Equity.... $ 344,421B) The units are expected to be sold for $9.50 with the following volumes: December 2012 26,000 January 2013 22,000 February 2013 30,000 March 2013 45,000 April 2013 42,000 May 2013 40,000 C) Variable manufacturing costs: Cost per Quantity Cost Unit Direct materials (DM) 0.3 kg $ 5.00 per kg $ 1.75 5 Direct labour (DL) 0.2 hours $15.0 per hour $ 3.00 0 Manufacturing Overhead 0.2 hours $ 8.00 per hour $ 1.60 (MOH) (applied on DLH) D) Total fixed manufacturing costs per unit: Estimated annual fixed manufacturing overhead $ 180,000 Includes annual depreciation of $ 24,000 Applied based on direct labour hours (DLH)E] Desired minimum inventories: Direct materials 15% of next month's production needs Finished goods 20% of next month's sales in units F} Selling & administrative costs: Variable: Sales commissions:3% of sales if sales are > $300,000 2% of sales if sales are
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