Xylia Ceramics makes and sells decorated vases for flower arrangements. As part of the master budget,...
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Xylia Ceramics makes and sells decorated vases for flower arrangements. As part of the master budget, following information is available for 2024: Estimated Sales Sale Price Direct Manufacturing Labour Hour (DMLH) per unit Wage per DMLH Cost of Materials January 10,000 $52.00 1.40 $18.50 $15.00 February 12,000 March April May June 12,000 8,000 7,000 11,000 $53.00 $54.00 $55.00 $56.00 1.50 $60.00 1.40 1.50 1.30 1.20 $18.50 $20.50 $20.50 $25.00 $16.00 $17.50 $19.00 $22.00 $26.00 $23.00 XylixZa Ceramics expects to have 7,500 vases on hand at 31 December 2023, and it has a policy of carrying an end-of-month inventory of 30% of the following month's sales. July 2024 sales are expected to be 13,000 vases. Required: 1. Prepare a sales budget, production budget and a direct manufacturing labour budget for Xylia Ceramics month-by-month for the first 6 months of 2024. The direct manufacturing labour budget should include labour-hours and total cost. 2. Provide 3 recommendations to Xylia Ceramics to assist with improved profitability and explain how they will be successful. Xylia Ceramics makes and sells decorated vases for flower arrangements. As part of the master budget, following information is available for 2024: Estimated Sales Sale Price Direct Manufacturing Labour Hour (DMLH) per unit Wage per DMLH Cost of Materials January 10,000 $52.00 1.40 $18.50 $15.00 February 12,000 March April May June 12,000 8,000 7,000 11,000 $53.00 $54.00 $55.00 $56.00 1.50 $60.00 1.40 1.50 1.30 1.20 $18.50 $20.50 $20.50 $25.00 $16.00 $17.50 $19.00 $22.00 $26.00 $23.00 XylixZa Ceramics expects to have 7,500 vases on hand at 31 December 2023, and it has a policy of carrying an end-of-month inventory of 30% of the following month's sales. July 2024 sales are expected to be 13,000 vases. Required: 1. Prepare a sales budget, production budget and a direct manufacturing labour budget for Xylia Ceramics month-by-month for the first 6 months of 2024. The direct manufacturing labour budget should include labour-hours and total cost. 2. Provide 3 recommendations to Xylia Ceramics to assist with improved profitability and explain how they will be successful.
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SOLUTION 1 Sales Production and Direct Manufacturing Labour Budgets Sales Budget January 12000 units ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0176223311
1st Canadian Edition
Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp
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