In: Accounting
Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2017 and reports a balance sheet at December 31, 2016 as follows:
Endless Mountain Company |
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Balance Sheet |
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December 31, 2016 |
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Assets |
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Current assets: |
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Cash |
$ |
46,200 |
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Accounts receivable (net) |
260,000 |
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Raw materials inventory (4,500 yards) |
11,250 |
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Finished goods inventory (1,500 units) |
32,250 |
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Total current assets |
$ |
349,700 |
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Plant and equipment: |
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Buildings and equipment |
900,000 |
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Accumulated depreciation |
(292,000 |
) |
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Plant and equipment, net |
608,000 |
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Total assets |
$ |
957,700 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
$ |
158,000 |
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Stockholders’ equity: |
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Common stock |
$ |
419,800 |
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Retained earnings |
379,900 |
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Total stockholders’ equity |
799,700 |
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Total liabilities and stockholders’ equity |
$ |
957,700 |
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The company’s chief financial officer (CFO), in consultation with various managers across the organization has developed the following set of assumptions to help create the 2017 budget:
ALL I NEED HELP WITH IS FILLING OUT THE CHART BELOW
:)
Prepare the ending finished goods inventory budget at December 31, 2017. (Round your answers to 2 decimal places.)
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Endless Mountain Company | ||||
Ending Finished Goods Inventory Budget (absorption costing) | ||||
31-Dec-17 | ||||
Item | Quantity | Cost/unit | Total | |
Production cost per unit: | ||||
Direct materials: | 3.5 | yards | 3 | 10.5 |
Direct Labour | 0.25 | hr | 18 | 4.5 |
Manufacturing overhead | 1 | unit | 7.46 | 7.46 |
Unit product cost( Current Production) | 22.46 | |||
Budgeted finished goods inventory: | ||||
Ending finished goods inventory in units | 450 | |||
Unit product costs | 22.46 | |||
From Current Production | 10106 | |||
Ending finished goods inventory in units | 1500 | |||
Unit product costs | 21.5 | |||
From Opening Stock | 32250 | |||
Total Ending finished goods inventory in dollars | 42356 | |||
Budgeted cost of goods sold: | ||||
Beginning finished goods inventory | 32250 | |||
Plus the cost of goods manufactured | 20,08,838 | |||
Less: ending inventory | 42356 | |||
Budgeted cost of goods sold in dollars: | 19,98,732 |