Question: Grady Inc manufactures model airplane kits and projects production at
Grady, Inc. manufactures model airplane kits and projects production at 350, 425, 450, and 500 kits per quarter. Direct materials are $ 6 per kit. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is $ 600, and the company desires to end each quarter with 20% of the materials needed for the next month’s production. Grady desires a balance of $ 600 in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.25 hours of direct labor at an average cost of $ 20 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $ 0.50 per kit and fixed overhead is $ 129 per quarter. Prepare Grady’s direct materials budget, direct labor budget, and manufacturing overhead budget for the year. Round the direct labor hours needed for production, budgeted overhead costs, and predetermined overhead allocation rate to two decimal places.
Answer to relevant QuestionsRefer to the budgets prepared in Exercise E22- 25. Determine the cost per kit to manufacture the model airplane kits. Grady projects sales of 325, 400, 475, and 525 kits per quarter. Prepare a cost of goods sold budget for ...Tremont, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2014, follows:In the past, cost of goods sold has been 40% of total sales. The director of mar-keting and the financial vice president ...Refer to Problem P22- 38A. Additional data for Mata Batting Company: a. Capital expenditures include $ 40,000 for new manufacturing equipment to be purchased and paid in the first quarter. b. Cash receipts are 75% of sales ...The Beta Batting Company manufactures wood baseball bats. Beta’s two primary products are a youth bat, designed for children and young teens, and an adult bat, designed for high school and college- aged players. Beta sells ...This problem continues the Davis Consulting, Inc. situation from Problem P20- 63 of Chapter 20. Assume Davis Consulting began January with $ 29,000 cash. Management forecasts that cash receipts from credit customers will be ...
Post your question