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ONLY NEED QUESTIONS 5-8 ANSWERED

The JustOneMore Company produces and sells organic plain potato chips. The one-pound family size bag of chips has two direct materials potatoes and packaging. JustOneMore is preparing budgets for the second quarter ending June 30, 2019. For each requirement below prepare budgets by month for April, May, and June, and a total budget for the quarter.

1. The previous years sales (2018) for the corresponding period were:

April 60,000 bags

May 70,000 bags

June 85,000 bags

July 75,000 bags

August 65,000 bags

5. JustOneMore budgets indirect materials (e.g., salt, oil) at $0.04 per bag. JustOneMore treats indirect labor and utilities as mixed costs. The variable components are $0.45 per bag for indirect labor and $0.15 per bag for utilities. The following fixed costs per month are budgeted for indirect labor, $20,000, utilities, $3,000, and other, $10,000. Prepare a Manufacturing Overhead budget.

6. Variable selling and administrative expenses are $1.05 per bag of chips sold. Fixed selling and administrative expenses are $40,000 per month. These costs are not itemized, i.e., the budget has only two line items variable operating expenses and fixed operating expenses. Prepare an Operating Expenses budget.

7. Prepare a Budgeted Manufacturing Cost per unit budget. Refer to exhibit 9-11 for guidance. To calculate FMOH/unit calculate total FMOH for the year and divide this by budgeted production for the year. The total production volume for the year is budgeted at 850,000 bags.

8. Prepare a Budgeted Income Statement for the quarter for JustOneMore. Assume interest expense of $0, and income tax expense of 21% of income before taxes.

Budget 1 Sales Budget Budgeted Sales (units) Quarter 227900 Selling Price p.u Budgeted Sales (in $) Cash Sales (20%) Credit Sales (80%) Apr 63600 (60000*1.06) 11.00 $ 6,99,600 $ 1,39,920 $ 5,59,680 $ May 74200 (70000*1.06) 11.00 $ 8,16,200 $ 1,63,240 $ 6,52,960 $ Jun 90100 (85000*1.06) 11.00 9,91,100 1,98,220 7,92,880 $ $ $ $ 11.00 25,06,900 5,01,380 20,05,520 Budget 2 Production Budget Budgeted Sales (units) (+) Closing Inventory (12% of next month Budg.Sale) (-) Opening Inventory Budgeted Production (units) Apr 63600 8904 -7632 64872 May 74200 10812 -8904 76108 Jun 90100 9540 -10812 88828 Quarter 227900 9540 -7632 229808 Budgeted Sales for July (in units) (75000*1.06) Closing Inventory for Jun (79500*12%) 79500 9540 Budget 3 Apr May Jun Quarter 76108 88828 229808 Direct Materials Budget A. Potatoes Budgeted Production (units) Raw material req. per unit Total Materials needs for production (in pounds) (+) Closing Inventory (25% of next month needs) (-) Opening Inventory Budgeted Potatoes to be purchased (pounds) Cost per pound (A) Budgeted cost of potatoes purchased 64872 4. 259488 76108 -66504 269092 1.10 2.96,001.20 304432 88828 -76108 317152 1.10 3,48,867.20 355312 78228 -88828 344712 1.10 3,79,183.20 919232 78228 -66504 930956 1.10 10,24,051.60 $ $ S $ $ $ $ B. Packaging rolls Budgeted Production (units) Raw material req. per unit Total Materials needs for production (in pounds) (+) Closing Inventory (15% of next month needs) (-) Opening Inventory Budgeted Potatoes to be purchased (pounds) Cost per pound (B) Budgeted cost of potatoes purchased 64872 0.02 1297.44 228.324 -200 1326 13.00 17,238.00 76108 0.02 1522.16 266.484 -228.324 1561 13.00 20,293.00 88828 0.02 1776.56 234.684 -266.484 1745 13.00 22,685.00 229808 0.02 4596.16 234.684 -200 4632 13.00 60,216.00 $ $ $ $ $ $ Total Direct Material purchases (A+B) $ 3,13,239.20 $ 3,69,160.20 $ 4,01,868.20 $ 10,84,267.60 Budgeted Sales for July (in units) (75000*1.06) Closing Inventory for July (65000*1.06*12%) (-) Opening Inventory for July Budgeted Production for July Closing Potato inventory for July (78228*4* 25%) Closing Packaging inventory for July (78228/50*15%) 79500 8268 -9540 78228 78228 234.684 Budget 4 Direct Labor Budget Budgeted Production (units) Labor hours req. per unit Total labor hours needed for production (in pounds) Cost per labor hr Budgeted Direct labor cost Apr 64872 0.15 9730.8 21.00 2,04,346.80 May 76108 0.15 11416.2 21.00 2,39,740.20 Jun 88828 0.15 13324.2 21.00 $ 2,79,808.20 $ Quarter 229808 0.15 34471.2 21.00 7,23,895.20 $ $ $ $ $ Budget 1 Sales Budget Budgeted Sales (units) Quarter 227900 Selling Price p.u Budgeted Sales (in $) Cash Sales (20%) Credit Sales (80%) Apr 63600 (60000*1.06) 11.00 $ 6,99,600 $ 1,39,920 $ 5,59,680 $ May 74200 (70000*1.06) 11.00 $ 8,16,200 $ 1,63,240 $ 6,52,960 $ Jun 90100 (85000*1.06) 11.00 9,91,100 1,98,220 7,92,880 $ $ $ $ 11.00 25,06,900 5,01,380 20,05,520 Budget 2 Production Budget Budgeted Sales (units) (+) Closing Inventory (12% of next month Budg.Sale) (-) Opening Inventory Budgeted Production (units) Apr 63600 8904 -7632 64872 May 74200 10812 -8904 76108 Jun 90100 9540 -10812 88828 Quarter 227900 9540 -7632 229808 Budgeted Sales for July (in units) (75000*1.06) Closing Inventory for Jun (79500*12%) 79500 9540 Budget 3 Apr May Jun Quarter 76108 88828 229808 Direct Materials Budget A. Potatoes Budgeted Production (units) Raw material req. per unit Total Materials needs for production (in pounds) (+) Closing Inventory (25% of next month needs) (-) Opening Inventory Budgeted Potatoes to be purchased (pounds) Cost per pound (A) Budgeted cost of potatoes purchased 64872 4. 259488 76108 -66504 269092 1.10 2.96,001.20 304432 88828 -76108 317152 1.10 3,48,867.20 355312 78228 -88828 344712 1.10 3,79,183.20 919232 78228 -66504 930956 1.10 10,24,051.60 $ $ S $ $ $ $ B. Packaging rolls Budgeted Production (units) Raw material req. per unit Total Materials needs for production (in pounds) (+) Closing Inventory (15% of next month needs) (-) Opening Inventory Budgeted Potatoes to be purchased (pounds) Cost per pound (B) Budgeted cost of potatoes purchased 64872 0.02 1297.44 228.324 -200 1326 13.00 17,238.00 76108 0.02 1522.16 266.484 -228.324 1561 13.00 20,293.00 88828 0.02 1776.56 234.684 -266.484 1745 13.00 22,685.00 229808 0.02 4596.16 234.684 -200 4632 13.00 60,216.00 $ $ $ $ $ $ Total Direct Material purchases (A+B) $ 3,13,239.20 $ 3,69,160.20 $ 4,01,868.20 $ 10,84,267.60 Budgeted Sales for July (in units) (75000*1.06) Closing Inventory for July (65000*1.06*12%) (-) Opening Inventory for July Budgeted Production for July Closing Potato inventory for July (78228*4* 25%) Closing Packaging inventory for July (78228/50*15%) 79500 8268 -9540 78228 78228 234.684 Budget 4 Direct Labor Budget Budgeted Production (units) Labor hours req. per unit Total labor hours needed for production (in pounds) Cost per labor hr Budgeted Direct labor cost Apr 64872 0.15 9730.8 21.00 2,04,346.80 May 76108 0.15 11416.2 21.00 2,39,740.20 Jun 88828 0.15 13324.2 21.00 $ 2,79,808.20 $ Quarter 229808 0.15 34471.2 21.00 7,23,895.20 $ $ $ $ $