Quinn Ltd. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants...

  

Transcribed Image Text:

Quinn Ltd. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants provide the following data: Sales budget Anticipated volume in units Unit selling price Product JB 50 Product JB 60 300,000 180,000 $20 $30 Production budget Desired ending finished goods units 30,000 25,000 Beginning finished goods units 20,000 15,000 Direct materials budget Direct materials per unit (kilograms) 2 3 Desired kilograms of ending direct materials 50,000 20,000 Beginning kilograms of direct materials 40,000 10,000 Cost per kilogram $2 $3 Direct labour budget Direct labour time per unit (hours) 0.5 0.75 Direct labour rate per hour $12 $12 Budgeted income statement Total unit cost $11 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expenses budget. The latter shows selling expenses of $560,000 for product JB 50 and $440,000 for product JB 60, and administrative expenses of $420,000 for product JB 50 and $380,000 for product JB 60. Income taxes are expected to be 30%. Instructions Prepare the following budgets for the year. Show data for each product. Do not prepare quarterly budgets. a. Sales a. Total sales: $11,400,000 b. Production b. Required production units: JB 50, 310,000 c. Direct materials d. Direct labour e. Income statement (Note: Income taxes are not allocated to the products.) Prepare sales and production budgets and calculate the cost per unit under two plans. Quinn Ltd. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants provide the following data: Sales budget Anticipated volume in units Unit selling price Product JB 50 Product JB 60 300,000 180,000 $20 $30 Production budget Desired ending finished goods units 30,000 25,000 Beginning finished goods units 20,000 15,000 Direct materials budget Direct materials per unit (kilograms) 2 3 Desired kilograms of ending direct materials 50,000 20,000 Beginning kilograms of direct materials 40,000 10,000 Cost per kilogram $2 $3 Direct labour budget Direct labour time per unit (hours) 0.5 0.75 Direct labour rate per hour $12 $12 Budgeted income statement Total unit cost $11 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expenses budget. The latter shows selling expenses of $560,000 for product JB 50 and $440,000 for product JB 60, and administrative expenses of $420,000 for product JB 50 and $380,000 for product JB 60. Income taxes are expected to be 30%. Instructions Prepare the following budgets for the year. Show data for each product. Do not prepare quarterly budgets. a. Sales a. Total sales: $11,400,000 b. Production b. Required production units: JB 50, 310,000 c. Direct materials d. Direct labour e. Income statement (Note: Income taxes are not allocated to the products.) Prepare sales and production budgets and calculate the cost per unit under two plans.