ACME Corporation produces scarves for all occasions in a variety of designer colours. 2022 Master budget data
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Question:
ACME Corporation produces scarves for all occasions in a variety of designer colours. 2022 Master budget data is as follows:
| Quarter | 1 (Jan - Mar) | 2 (Apr - Jun) | 3 (Jul - Sep) | 4 (Oct - Dec) | Total |
| Sales (units) | 15,000 | 18,000 | 21,000 | 24,000 | 78,000 |
| Unit Price | $100 | $100 | $100 | $100 | - |
| Production (units) | 18,000 | 21,600 | 25,200 | 28,800 | 93,600 |
| Raw material required per unit (yards) | 1.5 | 1.5 | 1.5 | 1.5 | - |
| Raw material price per yard | $20 | $20 | $20 | $20 | - |
| Direct labour hours per unit | 2 | 2 | 2 | 2 | - |
| Direct labour rate | $20 | $20 | $20 | $20 | - |
| Manufacturing overhead allocations per unit | $10 | $10 | $10 | $10 | - |
| Selling, general and administrative expenses | $195,000 | $195,000 | $195,000 | $195,000 | $780,000 |
Required: For the Third (3rd) quarter of 2022 a) Calculate ACME Corporation's cost of goods sold - please show your calculations. (3 marks) b) Prepar ACME Corporation's budgeted multi-step income statement; ignore interest and taxes. (4 marks)
A template for your answer is provided below.
a) Cost of goods sold = $
Calculations:
b)
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