BUILD an operating budgetsales budget Yogi Company manufactures luggage sets. Yogi sells its luggage sets to department
Question:
BUILD an operating budgetsales budget
Yogi Company manufactures luggage sets. Yogi sells its luggage sets to department stores. Yogi expects to sell 2,650 luggage sets for $420 each in January and 3,050 luggage sets for $420 each in February. All sales are cash only. Prepare the sales budget for January and February.
YOGI COMPANY | |||
Sales Budget | |||
For the Two Months Ended February 28 | |||
January | February | Total | |
Budgeted sets to be sold | |||
Sales price per set | |||
Total sales | |||
BUILD an operating budgetproduction budget
Yandell Company expects to sell 1,750 units of finished product in January and 2,100 units in February. The company has 340 units on hand on January 1 and desires to have an ending inventory equal to 60% of the next month's sales. March sales are expected to be 2,150 units. Prepare Yandell's production budget for January and February.
YANDELL COMPANY | |||
Production Budget | |||
For the Two Months Ended February 28 | |||
January | February | Total | |
Budgeted units to be sold | |||
Plus: Desired units in ending inventory (a) | 1,200 | ||
Total units needed | |||
Less: Units in beginning inventory | |||
Budgeted units to be produced | |||
(a) | |||||
60% | Next month's sales | = | Desired units in ending inventory | ||
January: | 60% | 2,100 units | = | ||
February: | 60% | 2,150 units | = | ||
BUILD an operating budgetdirect materials budget
Yosko expects to produce 1,999 units in January and 2,214 units in February. The company budgets $95 per unit for direct materials. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is $55,000. Yosko desires the ending balance in Raw Materials Inventory to be 40% of the next month's direct materials needed for production. Desired ending balance for February is $51,400. Prepare Yosko's direct materials budget for January and February.
YOSKO COMPANY | |||
Direct Materials Budget | |||
For the Two Months Ended February 28 | |||
January | February | Total | |
Budgeted units to be produced | |||
Direct materials cost per unit | |||
Direct materials needed for production | |||
Plus: Desired direct materials in ending inventory | |||
Total direct materials needed | |||
Less: Direct materials in beginning inventory | |||
Budgeted purchases of direct materials | |||
(a) | 40% | $_______ direct materials needed for production in Feb. | = | $_______ Jan. desired direct materials in ending inventory |
BUILD an operating budgetdirect labor budget
Yancey Company expects to produce 2,920 units in January and 2,974 units in February. Yancey budgets three direct labor hours per unit. Direct labor costs average $40 per hour. Prepare Yancey's direct labor budget for January and February.
YANCEY COMPANY | |||
Direct Labor Budget | |||
For the Two Months Ended February 28 | |||
January | February | Total | |
Budgeted units to be produced | |||
Direct labor hours per unit | |||
Direct labor hours needed for production | |||
Direct labor cost per hour | |||
Budgeted direct labor cost | |||
BUILD an operating budgetmanufacturing overhead budget
Yasmin Company expects to produce 2,210 units in January that will require 6,430 hours of direct labor and 2,380 units in February that will require 6,940 hours of direct labor. Yasmin budgets $10 per unit for variable manufacturing overhead; $1,400 per month for depreciation; and $33,920 per month for other fixed manufacturing overhead costs. Prepare Yasmin's manufacturing overhead budget for January and February, including the predetermined overhead allocation rate using direct labor hours as the allocation base.
YASMIN COMPANY | |||||||||||||||
Manufacturing Overhead Budget | |||||||||||||||
For the Two Months Ended February 28 | |||||||||||||||
January | February | Total | |||||||||||||
Budgeted units to be produced | |||||||||||||||
Variable overhead cost per unit | |||||||||||||||
Budgeted variable overhead | |||||||||||||||
Budgeted fixed overhead: | |||||||||||||||
Depreciation | |||||||||||||||
Other fixed overhead | |||||||||||||||
Total budgeted fixed overhead | |||||||||||||||
Budgeted manufacturing overhead costs | |||||||||||||||
Direct labor hours | 6,430 | 6,940 | |||||||||||||
Predetermined overhead allocation rate ($____ /______ Direct labor hours) | $ ___/DLHr | ||||||||||||||
BUILD an operating budgetcost of goods sold budget Young Company expects to sell 1,850 units in January and 1,950 units in February. The company expects to incur the following product costs: The beginning balance in Finished Goods Inventory is 270 units at $147 each for a total of $39,690. Young uses FIFO inventory costing method. Prepare the cost of goods sold budget for Young for January and February.
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YOUNG COMPANY | |||
Cost of Goods Sold Budget | |||
For the Two Months Ended February 28 | |||
January | February | Total | |
Beginning inventory, 270 units | |||
Units produced and sold $147 each (1,540 units in Jan.; 1,950 units in Feb.) | |||
Total budgeted cost of goods sold | |||
BUILD a financial budgetschedule of cash receipts
Yeaman expects total sales of $433,000 in January and $427,000 in February. Assume that Yeaman's sales are collected as follows:
60% in the month of the sale
30% in the month after the sale
8% two months after the sales
2% never collected
November sales totaled $270,000, and December sales were $335,000. Prepare a schedule of cash receipts from customers for January and February. Round answers to the nearest dollar.
Schedule of Cash Receipts from Customers | |||
January | February | Total | |
Total sales | |||
January | February | ||
Cash Receipts from Customers: | |||
Nov. sales--$270,000, 8% collected in Jan. | |||
Dec. sales$335,000, 30% collected in Jan. | |||
Dec. sales$335,000, 8% collected in Feb. |
| ||
Jan. sales$433,000, 60% collected in Jan. | |||
Jan. sales$433,000, 30% collected in Feb. |
| ||
Feb. sales$427,000, 60% collected in Feb. |
| ||
Total cash receipts from customers | |||
Net Accounts Receivable balance, February 28: | |
Jan. sales$433,000, 8% collected in Mar. | |
Feb. sales$427,000, 30% collected in Mar. | |
Feb. sales$427,000, 8% collected in Apr. |
BUILD a financial budgetschedule of cash payments
Yada Company budgeted direct materials purchases of $292,340 in January and $238,260 in February. Assume Yada pays for direct materials purchases 30% in the month of purchase and 70% in the month after purchase. The Accounts Payable balance on January 1 is $40,000. Prepare a schedule of cash payments for purchases for January and February.
Schedule of Cash Payment for Purchases | |||
January | February | Total | |
Total direct materials purchases |
| ||
January | February | ||
Cash Payments | |||
Direct Materials: | |||
Accounts Payable balance, January 1 | |||
JanuaryDirect materials purchases (30%) | |||
JanuaryDirect materials purchases (70%) |
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FebruaryDirect materials purchases (30%) |
| ||
Total payments for direct materials |
Accounts Payable balance, February 28: $________ (70% of February's direct materials purchases) |
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura