Question: Please show work and formulas used for excel The SK Industries, Inc. manufactures and sells two products, Accel Active and Accel Regular. In September 2018,

Please show work and formulas used for excel

The SK Industries, Inc. manufactures and sells two products, Accel Active and Accel Regular. In September 2018, SK Industries Budget Department gathered the following data in order to prepare budgets for 2019:

2019 Projected Sales

Product

Units

Price

Accel Active

45,000

$225

Accel Regular

75,000

$155

Expected Target Inventories

Product

January 1, 2019

December 31, 2019

Accel Active

9,000

12,000

Accel Regular

17,000

25,000

The following direct materials are expected to be used in the two products:

Material Used per Unit

Direct Material

Unit

Accel Active

Accel Regular

One

pound

6

4

Two

pound

4

2

Three

pound

2

0

Projected data for 2019 with respect to direct materials are as follows:

Direct Material

Expected Purchase Price

Expected Inventories (January 1, 2019)

Target Inventories (December 31, 2019)

One

$15

27,000 lb

35,000 lb

Two

$7

30,000 lb

35,000 lb

Three

$ 4

4,000 lb

7,000 lb

Projected direct labor requirements and rates for 2019 are as follows:

Product

Hours Per Unit

Rate Per Hour

Accel Active

4

$18

Accel Regular

3

$15

Manufacturing overhead is allocated at the rate of $22 per direct manufacturing labor-hour. Required: Based on the preceding projections and budget requirements for Accel Active and Accel Regular, prepare the following budgets for 2019:

  1. Revenues budget (in dollars)
  2. Production budget (in units)
  3. Direct materials purchases budget (in quantities)
  4. Direct materials purchases budget (in dollars)
  5. Direct manufacturing labor budget (in dollars)
  6. Direct manufacturing overhead budget (in dollars)
  7. Budgeted finished goods inventory at December 31, 2019 (in dollars)
  8. Cost of Goods Sold budget (in dollars)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!