The following information is for budget preparation for the Cruised model of car for the Dhodge...

 

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The following information is for budget preparation for the Cruised model of car for the Dhodge Motor Company, for August. Required: 1) Develop a production budget for the month of August. 2) Develop an operating budget for the month of August based on planned sales and production. Production Costs 1) PRODUCTION BUDGET Budgeted u sales target FG Invent ending target FG Invent beginning Units for production in August Try = correct = Try again Fixed Variable 2,200 400 Material 240,000 3,300 Labour 450,000 800 Overheads 10,100,000 10,790,000 1,800 5,900 2,600 Total 2) OPERATING BUDGET Total Selling, General & Admin expenses Units 2,200 Price Sales Fixed Variable 200,000 130 Unit Total fixed variable Fixed cost Other information Units cost Total Cost of good sold (COGS) Beginning finished goods inventory costs per unit 17,000 Budgeted selling price: Production: Materials 240.000 3,300 Production: Labour 450,000 800 2,200 Budgeted sales (units of cars in August) 2,600 Denominator level: cars per month (for ending fixed costs in finished goods) Prodution: OH 10,100,000 1,800 Total production costs Ending finished goods inventory 10,790,000 5,900 O Beginning finished goods (FG) inventory of cars (units) August (expected) 400 Ending finished goods (FG) inventory of cars (units) August (expected) Total COGS Gross profit 2% expected bad debt (of total sales) S&A expenses Bad debt write-off expense 200,000 130 Operating income The following information is for budget preparation for the Cruised model of car for the Dhodge Motor Company, for August. Required: 1) Develop a production budget for the month of August. 2) Develop an operating budget for the month of August based on planned sales and production. Production Costs 1) PRODUCTION BUDGET Budgeted u sales target FG Invent ending target FG Invent beginning Units for production in August Try = correct = Try again Fixed Variable 2,200 400 Material 240,000 3,300 Labour 450,000 800 Overheads 10,100,000 10,790,000 1,800 5,900 2,600 Total 2) OPERATING BUDGET Total Selling, General & Admin expenses Units 2,200 Price Sales Fixed Variable 200,000 130 Unit Total fixed variable Fixed cost Other information Units cost Total Cost of good sold (COGS) Beginning finished goods inventory costs per unit 17,000 Budgeted selling price: Production: Materials 240.000 3,300 Production: Labour 450,000 800 2,200 Budgeted sales (units of cars in August) 2,600 Denominator level: cars per month (for ending fixed costs in finished goods) Prodution: OH 10,100,000 1,800 Total production costs Ending finished goods inventory 10,790,000 5,900 O Beginning finished goods (FG) inventory of cars (units) August (expected) 400 Ending finished goods (FG) inventory of cars (units) August (expected) Total COGS Gross profit 2% expected bad debt (of total sales) S&A expenses Bad debt write-off expense 200,000 130 Operating income

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