The following information was provided by Hitchens widget store for July 31, 202X. They make two products:
Question:
The following information was provided by Hitchen’s widget store for July 31, 202X. They make two products: R2D2 & C3P0. Both items use 2 of the 3 listed materials: Nada, Yada, and Bozo.
Presented below is monthly sales data for the two balls
R2D2 C3P0
Expected unit sales 7500 11000
Expected price/unit 220 150
Beginning product inventory 700 units 300 units
Desired ending product inventory 500 units 500 units
Direct materials - R2D2 uses Nada and C3P0 uses Yada for production. Both products require a Bozo.
Nada (R2D2 only) Yada (C3P0 only) Bozo (both products)
Material / unit 5.9ft 4.5 ft 1 unit
Beginning DM Inv. 9,600 ft 6,200 ft 450
Ending DM Inv 4,000 ft 8,000 ft 300
Costs are 3.75per foot of Nada
Costs are 2.75per foot of Yada
Bozo’s cost $7.85 each
Direct Labor - Each product requires the time listed below. R2D2 C3P0
Process #1 2.1hours/unit 1.1hour/unit Paid 14.2/hr
Process #2 2.5 hours/unit 1.5 hours/ unit Paid $18/hr
Factor Overhead is broken into variable and fixed costs. Variable costs are estimated by D.L hour of Process #1. Fixed Costs are divided based on percent of Process #1 hours (round to nearest tenth of a percent). Round dollar amounts to nearest dollar
Variable Fixed
Indirect Materials ($3.5/hr) Supervisor salary $97,000
Indirect Labor ($4.8/hr) Depreciation 53000
Utilities (2.6/hr) Property taxes and ins. $48,500
Other Selling and Admin Expenses not listed above
Advertising 164000
Sales salaries 489,000
Office salaries 136,000
Income Tax percentage = 30%
Instructions:
Using the attached template fill-in sheet, complete all income statement budgets. Show all work for each budget
1. Sales budget – Determine total sales for each item and the combined total.
2. Production budget – Determine total units to be produced for each item and in total
3. Direct Materials budget – Determine total feet and total cost of each material and in total.
4. Direct Labor budget – Determine total hours and wage cost for each process and in total.
5. Factory O.H. budget – Determine the total variable cost, total fixed cost and manufacturing rate/hour using the cost driver.
6. Determine the Cost of Goods Sold for each item and in total.
7. Prepare the budgeted income statement for July 31, 202X
The following information was provided by Hitchen’s widget store for July 31, 202X. They make two products: R2D2 & C3P0. Both items use 2 of the 3 listed materials: Nada, Yada, and Bozo.
Presented below is monthly sales data for the two balls
R2D2 C3P0
Expected unit sales 7500 11000
Expected price/unit 220 150
Beginning product inventory 700 units 300 units
Desired ending product inventory 500 units 500 units
Direct materials - R2D2 uses Nada and C3P0 uses Yada for production. Both products require a Bozo.
Nada (R2D2 only) Yada (C3P0 only) Bozo (both products)
Material / unit 5.9ft 4.5 ft 1 unit
Beginning DM Inv. 9,600 ft 6,200 ft 450
Ending DM Inv 4,000 ft 8,000 ft 300
Costs are 3.75per foot of Nada
Costs are 2.75per foot of Yada
Bozo’s cost $7.85 each
Direct Labor - Each product requires the time listed below. R2D2 C3P0
Process #1 2.1hours/unit 1.1hour/unit Paid 14.2/hr
Process #2 2.5 hours/unit 1.5 hours/ unit Paid $18/hr
Factor Overhead is broken into variable and fixed costs. Variable costs are estimated by D.L hour of Process #1. Fixed Costs are divided based on percent of Process #1 hours (round to nearest tenth of a percent). Round dollar amounts to nearest dollar
Variable Fixed
Indirect Materials ($3.5/hr) Supervisor salary $97,000
Indirect Labor ($4.8/hr) Depreciation 53000
Utilities (2.6/hr) Property taxes and ins. $48,500
Other Selling and Admin Expenses not listed above
Advertising 164000
Sales salaries 489,000
Office salaries 136,000
Income Tax percentage = 30%
Instructions:
Using the attached template fill-in sheet, complete all income statement budgets. Show all work for each budget
1. Sales budget – Determine total sales for each item and the combined total.
2. Production budget – Determine total units to be produced for each item and in total
3. Direct Materials budget – Determine total feet and total cost of each material and in total.
4. Direct Labor budget – Determine total hours and wage cost for each process and in total.
5. Factory O.H. budget – Determine the total variable cost, total fixed cost and manufacturing rate/hour using the cost driver.
6. Determine the Cost of Goods Sold for each item and in total.
7. Prepare the budgeted income statement for July 31, 202X
The following information was provided by Hitchen’s widget store for July 31, 202X. They make two products: R2D2 & C3P0. Both items use 2 of the 3 listed materials: Nada, Yada, and Bozo.
Presented below is monthly sales data for the two balls
R2D2 C3P0
Expected unit sales 7500 11000
Expected price/unit 220 150
Beginning product inventory 700 units 300 units
Desired ending product inventory 500 units 500 units
Direct materials - R2D2 uses Nada and C3P0 uses Yada for production. Both products require a Bozo.
Nada (R2D2 only) Yada (C3P0 only) Bozo (both products)
Material / unit 5.9ft 4.5 ft 1 unit
Beginning DM Inv. 9,600 ft 6,200 ft 450
Ending DM Inv 4,000 ft 8,000 ft 300
Costs are 3.75per foot of Nada
Costs are 2.75per foot of Yada
Bozo’s cost $7.85 each
Direct Labor - Each product requires the time listed below. R2D2 C3P0
Process #1 2.1hours/unit 1.1hour/unit Paid 14.2/hr
Process #2 2.5 hours/unit 1.5 hours/ unit Paid $18/hr
Factor Overhead is broken into variable and fixed costs. Variable costs are estimated by D.L hour of Process #1. Fixed Costs are divided based on percent of Process #1 hours (round to nearest tenth of a percent). Round dollar amounts to nearest dollar
Variable Fixed
Indirect Materials ($3.5/hr) Supervisor salary $97,000
Indirect Labor ($4.8/hr) Depreciation 53000
Utilities (2.6/hr) Property taxes and ins. $48,500
Other Selling and Admin Expenses not listed above
Advertising 164000
Sales salaries 489,000
Office salaries 136,000
Income Tax percentage = 30%
Instructions:
Using the attached template fill-in sheet, complete all income statement budgets. Show all work for each budget
1. Sales budget – Determine total sales for each item and the combined total.
2. Production budget – Determine total units to be produced for each item and in total
3. Direct Materials budget – Determine total feet and total cost of each material and in total.
4. Direct Labor budget – Determine total hours and wage cost for each process and in total.
5. Factory O.H. budget – Determine the total variable cost, total fixed cost and manufacturing rate/hour using the cost driver.
6. Determine the Cost of Goods Sold for each item and in total.
7. Prepare the budgeted income statement for July 31, 202X
The following information was provided by Hitchen’s widget store for July 31, 202X. They make two products: R2D2 & C3P0. Both items use 2 of the 3 listed materials: Nada, Yada, and Bozo.
Presented below is monthly sales data for the two balls
R2D2 C3P0
Expected unit sales 7500 11000
Expected price/unit 220 150
Beginning product inventory 700 units 300 units
Desired ending product inventory 500 units 500 units
Direct materials - R2D2 uses Nada and C3P0 uses Yada for production. Both products require a Bozo.
Nada (R2D2 only) Yada (C3P0 only) Bozo (both products)
Material / unit 5.9ft 4.5 ft 1 unit
Beginning DM Inv. 9,600 ft 6,200 ft 450
Ending DM Inv 4,000 ft 8,000 ft 300
Costs are 3.75per foot of Nada
Costs are 2.75per foot of Yada
Bozo’s cost $7.85 each
Direct Labor - Each product requires the time listed below. R2D2 C3P0
Process #1 2.1hours/unit 1.1hour/unit Paid 14.2/hr
Process #2 2.5 hours/unit 1.5 hours/ unit Paid $18/hr
Factor Overhead is broken into variable and fixed costs. Variable costs are estimated by D.L hour of Process #1. Fixed Costs are divided based on percent of Process #1 hours (round to nearest tenth of a percent). Round dollar amounts to nearest dollar
Variable Fixed
Indirect Materials ($3.5/hr) Supervisor salary $97,000
Indirect Labor ($4.8/hr) Depreciation 53000
Utilities (2.6/hr) Property taxes and ins. $48,500
Other Selling and Admin Expenses not listed above
Advertising 164000
Sales salaries 489,000
Office salaries 136,000
Income Tax percentage = 30%
Instructions:
Using the attached template fill-in sheet, complete all income statement budgets. Show all work for each budget
1. Sales budget – Determine total sales for each item and the combined total.
2. Production budget – Determine total units to be produced for each item and in total
3. Direct Materials budget – Determine total feet and total cost of each material and in total.
4. Direct Labor budget – Determine total hours and wage cost for each process and in total.
5. Factory O.H. budget – Determine the total variable cost, total fixed cost and manufacturing rate/hour using the cost driver.
6. Determine the Cost of Goods Sold for each item and in total.
7. Prepare the budgeted income statement for July 31, 202X
The following information was provided by Hitchen’s widget store for July 31, 202X. They make two products: R2D2 & C3P0. Both items use 2 of the 3 listed materials: Nada, Yada, and Bozo.
Presented below is monthly sales data for the two balls
R2D2 C3P0
Expected unit sales 7500 11000
Expected price/unit 220 150
Beginning product inventory 700 units 300 units
Desired ending product inventory 500 units 500 units
Direct materials - R2D2 uses Nada and C3P0 uses Yada for production. Both products require a Bozo.
Nada (R2D2 only) Yada (C3P0 only) Bozo (both products)
Material / unit 5.9ft 4.5 ft 1 unit
Beginning DM Inv. 9,600 ft 6,200 ft 450
Ending DM Inv 4,000 ft 8,000 ft 300
Costs are 3.75per foot of Nada
Costs are 2.75per foot of Yada
Bozo’s cost $7.85 each
Direct Labor - Each product requires the time listed below. R2D2 C3P0
Process #1 2.1hours/unit 1.1hour/unit Paid 14.2/hr
Process #2 2.5 hours/unit 1.5 hours/ unit Paid $18/hr
Factor Overhead is broken into variable and fixed costs. Variable costs are estimated by D.L hour of Process #1. Fixed Costs are divided based on percent of Process #1 hours (round to nearest tenth of a percent). Round dollar amounts to nearest dollar
Variable Fixed
Indirect Materials ($3.5/hr) Supervisor salary $97,000
Indirect Labor ($4.8/hr) Depreciation 53000
Utilities (2.6/hr) Property taxes and ins. $48,500
Other Selling and Admin Expenses not listed above
Advertising 164000
Sales salaries 489,000
Office salaries 136,000
Income Tax percentage = 30%
Instructions:
Using the attached template fill-in sheet, complete all income statement budgets. Show all work for each budget
1. Sales budget – Determine total sales for each item and the combined total.
2. Production budget – Determine total units to be produced for each item and in total
3. Direct Materials budget – Determine total feet and total cost of each material and in total.
4. Direct Labor budget – Determine total hours and wage cost for each process and in total.
5. Factory O.H. budget – Determine the total variable cost, total fixed cost and manufacturing rate/hour using the cost driver.
6. Determine the Cost of Goods Sold for each item and in total.
7. Prepare the budgeted income statement for July 31, 202X
The following information was provided by Hitchen’s widget store for July 31, 202X. They make two products: R2D2 & C3P0. Both items use 2 of the 3 listed materials: Nada, Yada, and Bozo.
Presented below is monthly sales data for the two balls
R2D2 C3P0
Expected unit sales 7500 11000
Expected price/unit 220 150
Beginning product inventory 700 units 300 units
Desired ending product inventory 500 units 500 units
Direct materials - R2D2 uses Nada and C3P0 uses Yada for production. Both products require a Bozo.
Nada (R2D2 only) Yada (C3P0 only) Bozo (both products)
Material / unit 5.9ft 4.5 ft 1 unit
Beginning DM Inv. 9,600 ft 6,200 ft 450
Ending DM Inv 4,000 ft 8,000 ft 300
Costs are 3.75per foot of Nada
Costs are 2.75per foot of Yada
Bozo’s cost $7.85 each
Direct Labor - Each product requires the time listed below. R2D2 C3P0
Process #1 2.1hours/unit 1.1hour/unit Paid 14.2/hr
Process #2 2.5 hours/unit 1.5 hours/ unit Paid $18/hr
Factor Overhead is broken into variable and fixed costs. Variable costs are estimated by D.L hour of Process #1. Fixed Costs are divided based on percent of Process #1 hours (round to nearest tenth of a percent). Round dollar amounts to nearest dollar
Variable Fixed
Indirect Materials ($3.5/hr) Supervisor salary $97,000
Indirect Labor ($4.8/hr) Depreciation 53000
Utilities (2.6/hr) Property taxes and ins. $48,500
Other Selling and Admin Expenses not listed above
Advertising 164000
Sales salaries 489,000
Office salaries 136,000
Income Tax percentage = 30%
Instructions:
Using the attached template fill-in sheet, complete all income statement budgets. Show all work for each budget
1. Sales budget – Determine total sales for each item and the combined total.
2. Production budget – Determine total units to be produced for each item and in total
3. Direct Materials budget – Determine total feet and total cost of each material and in total.
4. Direct Labor budget – Determine total hours and wage cost for each process and in total.
5. Factory O.H. budget – Determine the total variable cost, total fixed cost and manufacturing rate/hour using the cost driver.
6. Determine the Cost of Goods Sold for each item and in total.
7. Prepare the budgeted income statement for July 31, 202X
The following information was provided by Hitchen’s widget store for July 31, 202X. They make two products: R2D2 & C3P0. Both items use 2 of the 3 listed materials: Nada, Yada, and Bozo.
Presented below is monthly sales data for the two balls
R2D2 C3P0
Expected unit sales 7500 11000
Expected price/unit 220 150
Beginning product inventory 700 units 300 units
Desired ending product inventory 500 units 500 units
Direct materials - R2D2 uses Nada and C3P0 uses Yada for production. Both products require a Bozo.
Nada (R2D2 only) Yada (C3P0 only) Bozo (both products)
Material / unit 5.9ft 4.5 ft 1 unit
Beginning DM Inv. 9,600 ft 6,200 ft 450
Ending DM Inv 4,000 ft 8,000 ft 300
Costs are 3.75per foot of Nada
Costs are 2.75per foot of Yada
Bozo’s cost $7.85 each
Direct Labor - Each product requires the time listed below. R2D2 C3P0
Process #1 2.1hours/unit 1.1hour/unit Paid 14.2/hr
Process #2 2.5 hours/unit 1.5 hours/ unit Paid $18/hr
Factor Overhead is broken into variable and fixed costs. Variable costs are estimated by D.L hour of Process #1. Fixed Costs are divided based on percent of Process #1 hours (round to nearest tenth of a percent). Round dollar amounts to nearest dollar
Variable Fixed
Indirect Materials ($3.5/hr) Supervisor salary $97,000
Indirect Labor ($4.8/hr) Depreciation 53000
Utilities (2.6/hr) Property taxes and ins. $48,500
Other Selling and Admin Expenses not listed above
Advertising 164000
Sales salaries 489,000
Office salaries 136,000
Income Tax percentage = 30%
Instructions:
Using the attached template fill-in sheet, complete all income statement budgets. Show all work for each budget
1. Sales budget – Determine total sales for each item and the combined total.
2. Production budget – Determine total units to be produced for each item and in total
3. Direct Materials budget – Determine total feet and total cost of each material and in total.
4. Direct Labor budget – Determine total hours and wage cost for each process and in total.
5. Factory O.H. budget – Determine the total variable cost, total fixed cost and manufacturing rate/hour using the cost driver.
6. Determine the Cost of Goods Sold for each item and in total.
7. Prepare the budgeted income statement for July 31, 202X
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines