Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Problem 9-42 Preparation of Master Budget (LO 9-3, 9-4, 9-5) - QUESTION HAS 7 PARTS!!!! (SEVEN) [The following information applies to the questions displayed below.]

Problem 9-42 Preparation of Master Budget (LO 9-3, 9-4, 9-5) - QUESTION HAS 7 PARTS!!!! (SEVEN)

[The following information applies to the questions displayed below.] FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements.

image text in transcribed

The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 460,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours.

image text in transcribed

The following selling and administrative expenses are anticipated for the next year.

image text in transcribed

The sales forecast for the next year is as follows:

image text in transcribed

The following inventory information is available for the next year. The unit production costs for each product are expected to be the same this year and next year.

image text in transcribed

Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent.

Problem 9-42 Part 1

Required: 1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.)

image text in transcribed

Problem 9-42 Part 2

2. Prepare the production budget for the next year. image text in transcribed

Problem 9-42 Part 3

3-a. Prepare the direct-material budget for paperboard. 3-b. Prepare the direct-material budget for corrugating medium.

image text in transcribed

image text in transcribed

Problem 9-42 Part 4

4. Prepare the direct-labor budget for the next year. (Do not round intermediate calculations. Round "Direct labor required per box (hours)" to 4 decimal places.)

image text in transcribed

Problem 9-42 Part 5

5. Prepare the production-overhead budget for the next year.

image text in transcribed

Problem 9-42 Part 6

6. Prepare the selling and administrative expense budget for the next year.

image text in transcribed

Problem 9-42 Part 7

7. Prepare the budgeted income statement for the next year. (Do not round intermediate calculations.)

image text in transcribed

Type of Box P Direct material required per 100 boxes: Paperboard ($0.40 per pound) Corrugating medium ($0.20 per pound) Direct labor required per 100 boxes ($20.00 per hour) 45 pounds 35 pounds 0.30 hour 85 pounds 45 pounds 0.60 hour Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total $ 13,950 88,450 43,500 29,000 22,000 51,500 $248,400 Salaries and fringe benefits of sales personnel Advertising Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses Total $133,500 29,500 149,000 46,000 7,400 $365,400 Box type C Box type P Sales Volume 465,000 boxes 465,000 boxes Sales Price $135.00 per hundred boxes 195.00 per hundred boxes Finished goods: Box type c Box type P Raw material: Paperboard Corrugating medium Expected Inventory January 1 13,500 boxes 23,500 boxes Desired Ending Inventory December 31 8,500 boxes 18,500 boxes 15,000 pounds 6,000 pounds 5,000 pounds 11,000 pounds Box C Box P Total Sales (in units) Sales price per unit Sales revenue $ 0 $ 0 HA 0 Box C Box P Sales Total units needed Production requirements Req 3A Req 3B Prepare the direct-material budget for paperboard. Box P Total Paperboard Box C Production requirement (number of boxes) Raw material required per box (pounds) 0.45 Raw material required for production (pounds) 0.85 5,000 Total raw-material needs Raw material to be purchased Price (per pound) Cost of purchases (paperboard) $ 0.40 Req Req 3B Prepare the direct-material budget for corrugating medium. Box P Total Corrugating Medium Box C Production requirements (number of boxes) Raw material required per box (pounds) 0.35 Raw material required for production (pounds) 0.45 11,000 Total raw-material needs Raw material to be purchased Price (per pound) Cost of purchases (corrugating medium) 0.20 Box C Box P Total Production requirements (number of boxes) Direct labor required per box (hours) Direct labor required for production (hours) Direct-labor rate Total direct-labor cost Total production overhead Total selling and administrative expenses Type of Box P Direct material required per 100 boxes: Paperboard ($0.40 per pound) Corrugating medium ($0.20 per pound) Direct labor required per 100 boxes ($20.00 per hour) 45 pounds 35 pounds 0.30 hour 85 pounds 45 pounds 0.60 hour Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total $ 13,950 88,450 43,500 29,000 22,000 51,500 $248,400 Salaries and fringe benefits of sales personnel Advertising Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses Total $133,500 29,500 149,000 46,000 7,400 $365,400 Box type C Box type P Sales Volume 465,000 boxes 465,000 boxes Sales Price $135.00 per hundred boxes 195.00 per hundred boxes Finished goods: Box type c Box type P Raw material: Paperboard Corrugating medium Expected Inventory January 1 13,500 boxes 23,500 boxes Desired Ending Inventory December 31 8,500 boxes 18,500 boxes 15,000 pounds 6,000 pounds 5,000 pounds 11,000 pounds Box C Box P Total Sales (in units) Sales price per unit Sales revenue $ 0 $ 0 HA 0 Box C Box P Sales Total units needed Production requirements Req 3A Req 3B Prepare the direct-material budget for paperboard. Box P Total Paperboard Box C Production requirement (number of boxes) Raw material required per box (pounds) 0.45 Raw material required for production (pounds) 0.85 5,000 Total raw-material needs Raw material to be purchased Price (per pound) Cost of purchases (paperboard) $ 0.40 Req Req 3B Prepare the direct-material budget for corrugating medium. Box P Total Corrugating Medium Box C Production requirements (number of boxes) Raw material required per box (pounds) 0.35 Raw material required for production (pounds) 0.45 11,000 Total raw-material needs Raw material to be purchased Price (per pound) Cost of purchases (corrugating medium) 0.20 Box C Box P Total Production requirements (number of boxes) Direct labor required per box (hours) Direct labor required for production (hours) Direct-labor rate Total direct-labor cost Total production overhead Total selling and administrative expenses

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health And Safety Environment And Quality Audits A Risk Based Approach

Authors: Stephen Asbury

4th Edition

1032427574, 978-1032427577

More Books

Students also viewed these Accounting questions