Acco 3520 tarea 7.1

1130 Chapter 22 Budgeting Basic Exercises BE 22-1 Flexible budgeting Obj. 2 At the beginning of the period, the Fabricating Department budgeted direct labor of $72,000 SHOW ME NOW and equipment depreciation of $18,500 for 2,400 hours of production. The department actually completed 2,350 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting. BE 22-2 Production budget Obj. 4 Pasadena Candle Inc. projected sales of 800,000 candles for January. The estimated January 1 HOW ME NOW inventory is 35,000 units, and the desired January 31 inventory is 20,000 units. What is the bud- geted production (in units) for January? BE 22-3 Direct materials purchases budget Obj. 4 Pasadena Candle Inc. budgeted production of 785,000 candles for January. Wax is required to HOW ME NOW produce a candle. Assume 10 ounces of wax is required for each candle. The estimated January 1 wax inventory is 16,000 pounds. The desired January 31 wax inventory is 12,500 pounds. If candle wax costs $1.24 per pound, determine the direct materials purchases budget for January. BE 22-4 Direct labor cost budget Obj. 4 Pasadena Candle Inc. budgeted production of 785,000 candles for January. Each candle requires SHOW ME NOW molding. Assume that six minutes are required to mold each candle. If molding labor costs $18 per hour, determine the direct labor cost budget for January. BE 22-5 Cost of goods sold budget Obj. 4 Prepare a cost of goods sold budget for Pasadena Candle Inc. using the information in Basic SHOW ME NOW Exercises 3 and 4. Assume the estimated inventories on January 1 for finished goods and work in process were $200,000 and $41,250, respectively. Also assume the desired inventories on January 31 for finished goods and work in process were $120,000 and $28,500, respectively. Factory overhead was budgeted at $300,060. BE 22-6 Cash budget Obj. 5 Pasadena Candle Inc. pays 40% of its purchases on account in the month of the purchase and SHOW ME HOW 60% in the month following the purchase. If purchases are budgeted to be $40,000 for August and $36,000 for September, what are the budgeted cash payments for purchases on account for September