Question

In: Accounting

September october November December January sales (units) 8000 12000 13000 16000 15000 Direct manufacturing labours hour...

September october November December January

sales (units) 8000 12000 13000 16000 15000

Direct manufacturing labours

hour per unit 1.79 1.75 1.70 1.65 1.60

Direct manufacturing labour rate per unit $15.75 $16.00 $16.50 $17.50 $17.50

Ending inventory required is the next month sales , plus one half the following months sales

The ending inventory in august was 15000 units

Each employee is required to contributed to canada pension plan in the order of 4.9% of wages, this is matched by the employer

Workers compensation expenses are 1.9% of the wage total

Employment insurance is 1.85% of wages and the employer pays 1.4 times the rate charged to the employee.

Required :

prepare a labour budget showing production requirements, labour hours and costs for the month of october

Expert Solution

1. Production Requirements

Particulars	Aug	Sep	Oct	Nov	Dec	Jan
Opening Inventory		15000	18500	21000	23500
+ Purchase		11500	14500	15500
- Closing Inventory	15000	18500	21000	23500

= Sales		8000	12000	13000	16000	15000

Note: Closing Inventory for month of October is 13000 + ½ of 16000 = 21000 and Purchase is the balancing figure

2. Labour Hours

Labour hour require per unit for the month of October is 1.75

Direct Labour Hours = 14500 units * 1.75

=25375 Hours

3. Labour Cost for month of October

Particulars	Amount (in $)
Direct Labour Wages (14500 units*16)	232000
Employer Contribution to Canada Pension Plan (232000*4.9%)	11368
Employment Insurance(232000*1.9%)	4408

Total Labour Cost for month of October	247776

ekkarill92 answered 3 years ago

Budgeted Sales: September October November December January 280,000 300,000 320,000 360,000 200,000 Planning Assumptions: 25% of...

Budgeted Sales: September October November December January 280,000 300,000 320,000 360,000 200,000 Planning Assumptions: 25% of all Sales are cash. Accounts receivable are collected 60% in the month of sale, 30% in the next month, and with the final 10% in the third month. Cost of Goods sold is 40% of sales. Inventory is purchased in the month prior to the sale, 70% is paid in the month of acquisition and 30% is paid the next month. Operating Expenses: Salaries...

Month May June July August September October November December January Sales 350 350 250 250 350...

Month May June July August September October November December January Sales 350 350 250 250 350 550 650 750 650 Collections month 0: 80%*95% month -1: 15% month -2: 5% Payments Purchase - 70% of next month sales Purchase payment - 50% of current month purchase Purchase payment - 50% of last month purchase Lease payment 10 10 10 10 10 10 construction 0 0 0 60 0 0 wages 30 30 40 50 70 80 other 5 5 5...

Selling price $75.00 June 8000 July 9000 August 10000 September 12000 Credit Sales Collected in the...

Selling price $75.00 June 8000 July 9000 August 10000 September 12000 Credit Sales Collected in the month of the sale 40% Following month 60% Ending finished goods inventory of the following month's unit sales 20% Ending raw materials inventory of the following month's raw materials production needs 10% Raw materials purchases are paid for in the month of purchase 30% Following month 70% Pounds of raw materials required for each unit of finished goods 5 Raw materials cost per pound...

1. Sales: Sales for November 2014???112,500 units Sales for December 2014???102,100 units Expected sales for January...

1. Sales: Sales for November 2014???112,500 units Sales for December 2014???102,100 units Expected sales for January 2015??113,000 units Expected sales for February 2015??112,500 units Expected sales for March 2015??116,000 units Expected sales for April 2015???125,000 units Expected sales for May 2015???137,500 units Selling price per unit????$12 Sprinkler likes to keep 10% of next month’s unit sales in ending inventory. All sales are on credit. 85% of the accounts receivable are collected in the month of sale and 15% of the...

Cheddar cheese, total Supply and disposition2 September 2019 October 2019 November 2019 December 2019 January 2020...

Cheddar cheese, total Supply and disposition2 September 2019 October 2019 November 2019 December 2019 January 2020 Tonnes Supply, total 52,295 56,466 57,389 56,675 57,238 Beginning stocks 39,478 41,949 44,234 42,674 42,274 Production 12,407 13,808 12,474 13,388 14,738 Imports 410 709 680 613 226 Ending stocks 41,949 44,234 42,674 42,274 42,660 Disappearance, total 10,346 12,232 14,714 14,401 14,578 Exports 121 256 367 191 487 Domestic disappearance 10,226 11,976 14,347 14,209 14,091 Cheddar cheese, total Supply and disposition2 September 2019 October 2019...

The budgeted sales for Milton Machine, Inc. are shown below: August............................$12,000 September......................$10,000 October..........................$20,000 November...................... $15,000 December.........................

The budgeted sales for Milton Machine, Inc. are shown below: August............................$12,000 September......................$10,000 October..........................$20,000 November...................... $15,000 December.........................$9,000 From past experience, the company has collected 20% of the cash in the month of the sale, 50% in the month after the sale, and 30% two months after the sale occurred. Prepare a schedule of expected cash collections from sales, by month and in total for the fourth quarter of the year.

Graham Potato Company has projected sales of $13,200 in September, $16,000 in October, $23,200 in November,...

Graham Potato Company has projected sales of $13,200 in September, $16,000 in October, $23,200 in November, and $19,200 in December. Of the company's sales, 25 percent are paid for by cash and 75 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December. Also assume Graham’s cash payments for November and December...

Graham Potato Company has projected sales of $20,400 in September, $22,000 in October, $30,400 in November,...

Graham Potato Company has projected sales of $20,400 in September, $22,000 in October, $30,400 in November, and $26,400 in December. Of the company's sales, 30 percent are paid for by cash and 70 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December. Also assume Graham’s cash payments for November and December...

Graham Potato Company has projected sales of $14,400 in September, $17,000 in October, $24,400 in November,...

Graham Potato Company has projected sales of $14,400 in September, $17,000 in October, $24,400 in November, and $20,400 in December. Of the company's sales, 25 percent are paid for by cash and 75 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December. Also assume Graham’s cash payments for November and December...

Information pertaining to ABC Company's sales budget is as follows: October November December Unit sales ...

Information pertaining to ABC Company's sales budget is as follows: October November December Unit sales 1,800 2,000 2,800 Unit sale price $ 10.00 Credit card sales 60% Cash sales 40% Fees paid to credit card companies 3% Cost of goods sold 40% of net sales Note: Net sales is gross sales less fees paid to credit card companies. Required: Compute the budgeted sales revenue, cost of goods sold and gross margin for the month of November.