Wicker Works Inc.'s budgeted unit sales for the year 2013 were:

Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000

Chairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000

The budgeted selling price for tables was $175 per table, and it was $75 per chair. The beginning finished goods inventories were expected to be 1,000 tables and 4,000 chairs, for a total cost of $240,000, with desired ending inventories at 1,500 and 6,000, respectively, with a total cost of $360,000. There was no anticipated beginning or ending work-in-process inventory for either item. The standard materials quantities for each item were as follows:

The purchase prices of rattan and binding cane were $5 and $3 per yard, respectively. The desired ending inventories for rattan and binding cane were 51,000 and 25,500 yards, respectively. The estimated beginning inventories for rattan and binding cane were 34,000 and 17,000 yards, respectively. The direct labor hours required for each type of item were as follows:

The direct labor rate for each department is as follows:
Assembly Department...... $15 per hour
Finishing Department.......$13 per hour
Budgeted factory overhead costs for 2013 were as follows:
Indirect materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 98,500
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,200
Depreciation of building and equipment . . . . . . . . . . . . . . . . . 57,500
Power and light . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,200
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $380,400

Required:
Prepare each of the following budgets for Wicker Works for the year ended 2013:
1. Sales budget.
2. Production budget.
3. Direct material budget.
4. Direct labor budget.
5. Factory overhead budget.
6. Cost of goods soldbudget.

Transcribed Image Text:

Table Chair 10 yd6 y 6 yd 3 yd Assembly Finishing Department Department Table 0.50 0.25 0.25 0.10