Edgeworth Box Corporation manufactures two types of cardboard boxes used
Edgeworth Box Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements.


The unit production costs for each product are expected to be the same this year and next year. The following production- overhead costs are anticipated for the next year. The predetermined over-head rate is based on a production volume of 495,000 units for each type of box. Production overhead is applied on the basis of direct- labor hours.
Indirect material......................................................................... $ 15,750
Indirect labor............................................................................. 75,000
Utilities............................................................................. 37,500
Property taxes........................................................................ 27,000
Insurance............................................................................. 24,000
Depreciation............................................................................. 43,500
Total............................................................................. $ 222,750
The following selling and administrative expenses are anticipated for the next year.
Salaries and fringe benefits of sales personnel.....................$ 112,500
Advertising........................................................................ 22,500
Management salaries and fringe benefits................................ 135,000
Clerical wages and fringe benefits......................................... 39,000
Miscellaneous administrative expenses.................................. 6,000
Total........................................................................................ 315,000
The sales forecast for the next year is as follows:


The following inventory information is available for the next year.


Required:
Prepare a master budget for Edgeworth Box Corporation for the next year. Assume an income tax rate of 35 percent. Include the following schedules.
1. Sales budget.
2. Production budget.
3. Direct-material budget.
4. Direct- labor budget.
5. Production-overhead budget.
6. Selling and administrative expense budget.
7. Budgeted income statement.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help