Bonita Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master
Question:
Bonita Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022.
January | February | March | April | May | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Estimated unit sales | 13,920 | 16,240 | 15,080 | 12,760 | 12,760 | |||||
Unit selling price | $50 | $47.5 | $47.5 | $47.5 | $47.5 | |||||
Direct labor hours per unit | 2.0 | 2.0 | 1.5 | 1.5 | 1.5 | |||||
Direct labor cost per hour | $8.0 | $8.0 | $8.0 | $9.0 | $9.0 |
Bonita has a labor contract that calls for a wage increase to $9.0 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1.
Bonita expects to begin the year with 20,416 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month’s sales, plus 40% of the second following month’s sales.
(a)
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Your answer is partially correct.
Prepare a production budget for Bonita Company by month and for the first quarter of the year.
BONITA COMPANY | ||||||||
---|---|---|---|---|---|---|---|---|
Jan | Feb | Mar | Total | |||||
select an opening production budget item Beginning InventoryRequired Production UnitsDirect Materials Per UnitSales in UnitsDesired Ending Direct MaterialsTotal Required UnitsDirect Materials PurchasesTotal Materials RequiredDesired Ending InventoryBeginning Direct Materials | enter a number of units | enter a number of units | enter a number of units | enter a number of units | ||||
select between addition and deduction AddLess: select a production budget item Total Required UnitsDirect Materials Per UnitTotal Materials RequiredSales in UnitsDesired Ending Direct MaterialsDirect Materials PurchasesBeginning Direct MaterialsDesired Ending InventoryBeginning InventoryRequired Production Units | enter a number of units | enter a number of units | enter a number of units | enter a number of units | ||||
select a summarizing line for the first part Total Required UnitsDesired Ending InventoryDesired Ending Direct MaterialsBeginning InventoryBeginning Direct MaterialsDirect Materials PurchasesRequired Production UnitsSales in UnitsDirect Materials Per UnitTotal Materials Required | enter a total number of units for the first part | enter a total number of units for the first part | enter a total number of units for the first part | enter a total number of units for the first part | ||||
select between addition and deduction AddLess: select a production budget item Total Materials RequiredDesired Ending Direct MaterialsDesired Ending InventorySales in UnitsTotal Required UnitsRequired Production UnitsBeginning Direct MaterialsDirect Materials PurchasesBeginning InventoryDirect Materials Per Unit | enter a number of units | enter a number of units | enter a number of units | enter a number of units | ||||
Total Required Units Sales in UnitsDesired Ending Direct MaterialsRequired Production UnitsBeginning InventoryDirect Materials Per UnitDesired Ending InventoryBeginning Direct MaterialsTotal Required UnitsDirect Materials PurchasesTotal Materials Required | enter a total number of units | enter a total number of units | enter a total number of units | enter a total number of units |
Cost Accounting A Managerial Emphasis
ISBN: 978-0133428704
15th edition
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan