1. Show the calculation of sales 2. Show the calculation of cost of goods sold (COGS)...

  

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1. Show the calculation of sales 2. Show the calculation of cost of goods sold (COGS) 3. How much material is purchased in the budget 4. What are total labour costs in the budget 5. What are total factory overhead costs in the budget 6. Show the development of work in process inventory in the budget 7. Show the development of the cost of finished goods inventory in the budget 8. What is a major driver of cash and, thus, should be an important execution goal coming out of the budget Answer the queslions below regarding the bottoms-up budget summary displayed next. Income Statement Budget 2,700,000 Sales Per unit Costs Material 2.00 600,000 900,000 375,000 1,875,000 Labour 3.00 Overhead 1.25 COGS 6.25 Gross Margin 825,000 Selling and Admin Costs 750,000 Operating Profit 75,000 Balance Sheet Budget Last year Cash 50,000 45,000 Material 60,000 40,000 Work in Process 102,500 187,500 40,000 Finished Goods 125,000 Fixed Assets 100,000 100,000 500,000 350,000 Debt 250,000 100,000 175,000 100,000 Com mon Stock Retained Earnings 150,000 75,000 500,000 350,000 Data: • Sales in the budget are 300,000 units sold at 59 per unit • The per unit cost of material, labour and factory overhead are indicated above • Desired finished goods ending inventory is 30,000 units where beginning inventory was 20,000 units • Material used in in production in dollars is estimated at $620,000 • Desired material ending inventory is $60,000 where beginning inventory was $40,000 • Labour hours for production is estimated at 77,500 hours at $12 per hour • Factory overhead is estimated at $5 per labour hour worked • Beginning work in process inventory is $40,000 • Selling and administrative costs are $750,000 in the Budget 1. Show the calculation of sales 2. Show the calculation of cost of goods sold (COGS) 3. How much material is purchased in the budget 4. What are total labour costs in the budget 5. What are total factory overhead costs in the budget 6. Show the development of work in process inventory in the budget 7. Show the development of the cost of finished goods inventory in the budget 8. What is a major driver of cash and, thus, should be an important execution goal coming out of the budget Answer the queslions below regarding the bottoms-up budget summary displayed next. Income Statement Budget 2,700,000 Sales Per unit Costs Material 2.00 600,000 900,000 375,000 1,875,000 Labour 3.00 Overhead 1.25 COGS 6.25 Gross Margin 825,000 Selling and Admin Costs 750,000 Operating Profit 75,000 Balance Sheet Budget Last year Cash 50,000 45,000 Material 60,000 40,000 Work in Process 102,500 187,500 40,000 Finished Goods 125,000 Fixed Assets 100,000 100,000 500,000 350,000 Debt 250,000 100,000 175,000 100,000 Com mon Stock Retained Earnings 150,000 75,000 500,000 350,000 Data: • Sales in the budget are 300,000 units sold at 59 per unit • The per unit cost of material, labour and factory overhead are indicated above • Desired finished goods ending inventory is 30,000 units where beginning inventory was 20,000 units • Material used in in production in dollars is estimated at $620,000 • Desired material ending inventory is $60,000 where beginning inventory was $40,000 • Labour hours for production is estimated at 77,500 hours at $12 per hour • Factory overhead is estimated at $5 per labour hour worked • Beginning work in process inventory is $40,000 • Selling and administrative costs are $750,000 in the Budget

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1Calculation of sales 300000 units 9unit 2700000 2Calculation of Cost of Goods SoldCOGS Per un... View the full answer