Bxample$-$Manufacturing Budgets

Elysian Designs, Inc. is preparing its master budget for the first quarter of the year. Actual sales in December were $$60,000.$ The selling price per unit is $$100.$ Sales for the first five months, in units, are as follows:

January: $5,000$ units

February: $4,500$ units

March: $4,000$ units

April: $4,200$ units

May: $4,800$ units

Elysian Designs has a policy stating that each month's ending inventory of finished goods be $20\%$ of the following month's unit sales.

Two yards of direct material are needed per unit at a cost of $$10$ per yard. Ending inventory of direct materials should be $10\%$ next month's production needs.

Budgeted direct labor per unit is $1$ hour at a direct labor rate per hour of $$16.$

Monthly fixed manufacturing overhead costs are forecasted to include $$10,000$ for rent and property taxes, $$5,000$ for depreciation $$7,000$ for indirect labor, $$3,000$ for insurance, and $$5,000$ for other fixed manufacturing overhead costs. Monthly variable manufacturing overhead is budgeted to be $$6$ per unit produced. All expenses are paid in the month incurred.

December's cost per finished unit was $$48\mathrm{.}10$

Monthly fixed selling, general, Bxample$-$Manufacturing Budgets

Elysian Designs, Inc. is preparing its master budget for the first quarter of the year. Actual sales in December were $$60,000.$ The selling price per unit is $$100.$ Sales for the first five months, in units, are as follows:

January: $5,000$ units

February: $4,500$ units

March: $4,000$ units

April: $4,200$ units

May: $4,800$ units

Elysian Designs has a policy stating that each month's ending inventory of finished goods be $20\%$ of the following month's unit sales.

Two yards of direct material are needed per unit at a cost of $$10$ per yard. Ending inventory of direct materials should be $10\%$ next month's production needs.

Budgeted direct labor per unit is $1$ hour at a direct labor rate per hour of $$16.$

Monthly fixed manufacturing overhead costs are forecasted to include $$10,000$ for rent and property taxes, $$5,000$ for depreciation $$7,000$ for indirect labor, $$3,000$ for insurance, and $$5,000$ for other fixed manufacturing overhead costs. Monthly variable manufacturing overhead is budgeted to be $$6$ per unit produced. All expenses are paid in the month incurred.

December's cost per finished unit was $$48\mathrm{.}10$

Monthly fixed selling, general,