Prasmul Corporation is preparing its budget for the coming year, 2 0 2 3 . The first
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Question:
Prasmul Corporation is preparing its budget for the coming year, The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process.
Sales
Sales for the first quarter is units. It is projected to be increase in every quarter. The unit price is $
Productions
Prasmul wish to maintain desired ending finished goods in each quarter to be of the next quarter expected unit sales
Direct materials
Direct materials needed per unit is kilogram. The price per kilogram is $ Prasmul likes to keep of the materials needed for the next quarter in its ending inventory.
Direct labors
Labor required minutes per unit for completion and is paid at a rate of $ per hour Manufacturing Overhead
Variable manufacturing overhead is based on direct labor hour. Total variable manufacturing overhead rate is $ per direct labor hour. Total fixed manufacturing overhead for the year will be $ The predetermined overhead rate is $ per direct labor hour
Selling and Administrative Expense
Variable selling and administrative cost per unit is $ per unit sold. Fixed selling and administrative expenses are $ per quarter
Instructions
a Determine the total expected unit sold for the year units b Determine the unit production required in Q units
c Determine the total cost of direct material purchase in Q $ d Determine the total direct labor cost in Q $
e Deternine the Cost of Goods Sold for the year $
Related Book For
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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