Shimmer Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to...
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Shimmer Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 23,000 Knox lamps and 13,000 Ayer lamps in 2017. The following data are available for the year 2017. (Click the icon to view the information.) (Click the icon to view the December 31, 2017 production budget in units) Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3A); (b) the direct materials purchase budget in quantity and dollars (label it Schedule 3B); and (c) the direct manufacturing labor costs budget (label it Schedule 4) for the year ending December 31, 2017. (a). Begin by calculating the direct materials usage budget in quantity and then in dollars (label it Schedule 3A) for the year ending December 31, 2017 Schedule 3A: Direct Material Usage Budget in Quantity and Dollars for the Year Ending December 31, 2017 Material Metal Fabric Total Physical Units Budget Direct materials required for Knox lamps Direct materials required for Ayer lamps Total quantity of direct materials to be used lbs. lbs. lbs. yards yards yards Data table Direct materials Metal $ Fabric $ Direct manufacturing labor $ Content of Each Product Unit Metal Fabric Direct manufacturing labor Beginning inventory Target ending inventory 2 per pound (same as in 2016) 3 per yard (same as in 2016) 14 per hour Product Knox 3 pounds 1 yard 0.15 hours Ayer 4 pounds 3 yards 0.3 hours Fabric 4,000 yards 2,000 yards Direct Materials Metal 9,000 pounds 7,000 pounds Data table Schedule 2: Production Budget (in Units) for the Year Ending December 31, 2017 Knox Budgeted units sales Add target ending finished goods inventory Total required units Deduct beginning finished goods inventory Units of finished goods to be produced JUUNIC 23,700 1,900 25,600 2,600 23,000 Ayer 13,000 900 13,900 900 13,000 Shimmer Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 23,000 Knox lamps and 13,000 Ayer lamps in 2017. The following data are available for the year 2017. (Click the icon to view the information.) (Click the icon to view the December 31, 2017 production budget in units) Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3A); (b) the direct materials purchase budget in quantity and dollars (label it Schedule 3B); and (c) the direct manufacturing labor costs budget (label it Schedule 4) for the year ending December 31, 2017. (a). Begin by calculating the direct materials usage budget in quantity and then in dollars (label it Schedule 3A) for the year ending December 31, 2017 Schedule 3A: Direct Material Usage Budget in Quantity and Dollars for the Year Ending December 31, 2017 Material Metal Fabric Total Physical Units Budget Direct materials required for Knox lamps Direct materials required for Ayer lamps Total quantity of direct materials to be used lbs. lbs. lbs. yards yards yards Data table Direct materials Metal $ Fabric $ Direct manufacturing labor $ Content of Each Product Unit Metal Fabric Direct manufacturing labor Beginning inventory Target ending inventory 2 per pound (same as in 2016) 3 per yard (same as in 2016) 14 per hour Product Knox 3 pounds 1 yard 0.15 hours Ayer 4 pounds 3 yards 0.3 hours Fabric 4,000 yards 2,000 yards Direct Materials Metal 9,000 pounds 7,000 pounds Data table Schedule 2: Production Budget (in Units) for the Year Ending December 31, 2017 Knox Budgeted units sales Add target ending finished goods inventory Total required units Deduct beginning finished goods inventory Units of finished goods to be produced JUUNIC 23,700 1,900 25,600 2,600 23,000 Ayer 13,000 900 13,900 900 13,000
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Answer Step1 Metal Fabric Knox Lumps produced 23000 13000 Multiply Material QTY per finished unit 3 ... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
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