Spaworks Inc. makes hot tubs for residential use. The hot tubs, which consist of a fibreglass...

 

 

 

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Spaworks Inc. makes hot tubs for residential use. The hot tubs, which consist of a fibreglass finish and proprietary insulation glass, are sold with an all-weather pump and heater unit for $2,750. The company is planning its annual budget for the coming year ending October 31, 2020, and the controller has provided the following data: Sales F2020 15,000 tubs November sales: 1,800 tubs; December sales: 1,500 tubs F2021 Selling price per tub: $2,750.00 Materials and labour requirements (per tub) Direct materials Insulation Fibreglass Pumps Direct labour 5.0 kg 10.4 sq. metre (m2) 1 unit 8 hours Inventories Qty Units Cost Beginning: Finished goods 550 unit $1,400.00 Direct materials Insulation 2,195 kg m2 $15.00 Fibreglass Pumps 6,500 $12.00 $850.00 550 unit Ending finished goods inventory is 25% of next month's sales. Ending direct materials inventories are 20% of next month's production needs. Direct materials inventory is expected to change to the following: $ 16.00 per kg $ 13.00 per square metre $900.00 per unit Insulation Fibreglass Pumps Other rates Direct labour wage rate Variable manufacturing overhead Variable marketing costs Number of customers $22.50 per hour $26.00 per direct labour hour $250 per customer 15,000 Other costs Fixed manufacturing overhead Fixed non-manufacturing costs $319,275 $1,250,000 Required: Prepare the following schedules of the master budget for the year ended October 31, 2020. Assume that the company uses first in, first out (FIFO) for inventory costs: a) Revenue budget b) Production budget c) Direct materials usage budget d) Direct materials purchases budget Spaworks Inc. makes hot tubs for residential use. The hot tubs, which consist of a fibreglass finish and proprietary insulation glass, are sold with an all-weather pump and heater unit for $2,750. The company is planning its annual budget for the coming year ending October 31, 2020, and the controller has provided the following data: Sales F2020 15,000 tubs November sales: 1,800 tubs; December sales: 1,500 tubs F2021 Selling price per tub: $2,750.00 Materials and labour requirements (per tub) Direct materials Insulation Fibreglass Pumps Direct labour 5.0 kg 10.4 sq. metre (m2) 1 unit 8 hours Inventories Qty Units Cost Beginning: Finished goods 550 unit $1,400.00 Direct materials Insulation 2,195 kg m2 $15.00 Fibreglass Pumps 6,500 $12.00 $850.00 550 unit Ending finished goods inventory is 25% of next month's sales. Ending direct materials inventories are 20% of next month's production needs. Direct materials inventory is expected to change to the following: $ 16.00 per kg $ 13.00 per square metre $900.00 per unit Insulation Fibreglass Pumps Other rates Direct labour wage rate Variable manufacturing overhead Variable marketing costs Number of customers $22.50 per hour $26.00 per direct labour hour $250 per customer 15,000 Other costs Fixed manufacturing overhead Fixed non-manufacturing costs $319,275 $1,250,000 Required: Prepare the following schedules of the master budget for the year ended October 31, 2020. Assume that the company uses first in, first out (FIFO) for inventory costs: a) Revenue budget b) Production budget c) Direct materials usage budget d) Direct materials purchases budget

Answer rating: 100% (QA)

Revenue budget Expected sales in units 15000 x Selling price per tube 27... View the full answer