Pet Transport Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Information for the two products for the month of April is given in the following tables:
Inventory information, direct materials
Pet Transport accounts for direct materials using a FIFO cost flow assumption.
Sales and inventory information, finished goods
Pet Transport uses a FIFO cost flow assumption for finished goods inventory.
Pet Transport uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $100 per setup hour, $5 per machine hour, and $16 per inspection hour. Other information follows:
Nonproduction fixed costs for March equal $36,000, of which half are salaries. Salaries are expected to increase by 5% in April. The only variable nonproduction cost is sales commission, equal to 1% of sales revenue.
Prepare the following for April:
1. Revenue budget.
2. Production budget in units.
3. Direct material usage budget and direct material purchases budget.
4. Direct manufacturing labour cost budget.
5. Manufacturing overhead cost budgets for each of the three activities.
6. Budgeted unit cost of ending finished goods inventory and ending inventories budget.
7. Cost of goods sold budget.
8. Non-manufacturing costs budget.
9. Budgeted income statement (ignore income taxes).

  • CreatedJuly 31, 2015
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