In: Accounting
LearnCo Sales Budget For the Year Ending December 31, 20Y2 |
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Product |
Unit Sales Volume |
Unit Selling Price |
Total Sales |
Basic Abacus | 36000 | $7 | $252,000 |
Deluxe Abacus | 36000 | 13 | 468,000 |
Totals | 72,000 | - | $720,000 |
LearnCo Production Budget For the Year Ending December 31, 20Y2 |
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Units Basic | Units Deluxe | |
Expected units to be sold (from Sales Budget) | 36000 | 36000 |
Desired ending inventory, December 31, 20Y2 | 1,000 | 3,000 |
Total units available | 37000 | 39000 |
Estimated beginning inventory, January 1, 20Y2 | (1,050) | (2,100) |
Total units to be produced | 35950 | 36900 |
The direct materials purchases budget should be integrated with the production budget to ensure that production is not interrupted during the year.
Before you make any changes to the budget, you review the information on the following Direct Materials Data Table and enter the units to be produced from the Production Budget. After scanning the direct materials purchases budget (which follows the Direct Materials Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Materials Data Table, or from the sales budget and production budget you prepared. When required, round your answers to the nearest dollar.
Direct Materials Data Table | ||
Wood Pieces | Beads | |
Packages required per unit: | ||
Basic abacus | 1 | 2 |
Deluxe abacus | 2 | 3 |
Cost per package: | ||
Wood pieces | $0.20 | |
Beads | $0.20 | |
Units to be produced (from Production Budget): | ||
Basic abacus | ||
Deluxe abacus |
LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 20Y2 |
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Direct Materials | |||
Wood Pieces | Beads | Total | |
Packages required for production: | |||
Basic abacus | |||
Deluxe abacus | |||
Desired inventory, December 31, 20Y2 | 2,200 | 5,000 | |
Total packages available | |||
Estimated inventory, January 1, 20Y2 | (3,500) | (4,500) | |
Total packages to be purchased | |||
Unit price (per package) | × $ | × $ | |
Total direct materials to be purchased | $ | $ | $58,310 |
Direct Materials Data Table |
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Wood Pieces |
Beads |
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Packages required per unit: |
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Basic abacus |
1 |
2 |
Deluxe abacus |
2 |
3 |
Cost per package: |
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Wood pieces |
$0.20 |
$0.20 |
Beads |
$0.20 |
$0.20 |
Units to be produced (from Production Budget): |
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Basic abacus |
35,950 |
35,950 |
Deluxe abacus |
36,900 |
36,900 |
LearnCo |
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Direct Materials Purchases Budget |
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For the Year Ending December 31, 20Y2 |
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Direct Materials |
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Wood Pieces |
Beads |
Total |
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Packages required for production: |
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Basic abacus |
35,950 |
71,900 |
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Deluxe abacus |
73,800 |
110,700 |
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Desired inventory, December 31, 20Y2 |
2,200 |
5,000 |
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Total packages available |
111,950 |
187,600 |
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Estimated inventory, January 1, 20Y2 |
(3,500) |
(4,500) |
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Total packages to be purchased |
108,450 |
183,100 |
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Unit price (per package) |
$0.20 |
$0.20 |
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Total direct materials to be purchased |
$21,690 |
$36,620 |
$58,310 |