Exercise 23-8 Fuqua Company’s sales budget projects unit sales of part 198Z of 10,900 units in...

Exercise 23-8
Fuqua Company’s sales budget projects unit sales of part 198Z of 10,900 units in January, 12,200 units in February, and 14,000 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $4 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2016.

a) Prepare a production budget for January and February 2017.

b) Prepare a direct materials budget for January 2017.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Exercise 21-8 (Part Level Submission) Fuqua Company’s sales budget projects unit sales of part 198Z of...

Exercise 21-8 (Part Level Submission) Fuqua Company’s sales budget projects unit sales of part 198Z of 10,900 units in January, 12,800 units in February, and 13,100 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $3 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were...

Concord Company’s sales budget projects unit sales of part 198Z of 11,000 units in January, 12,600...

Concord Company’s sales budget projects unit sales of part 198Z of 11,000 units in January, 12,600 units in February, and 14,000 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $3 per pound. Concord Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2016....

Fuqua Company’s sales budget projects unit sales of part 198Z of 10,300 units in January, 12,600...

Fuqua Company’s sales budget projects unit sales of part 198Z of 10,300 units in January, 12,600 units in February, and 13,800 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $4 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2019....

Exercise 8-6 Selling and Administrative Expense Budget Weller Company's budgeted unit sales for the upcoming fiscal...

Exercise 8-6 Selling and Administrative Expense Budget Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 15,000 16,000 14,000 13,000 The company’s variable selling and administrative expense per unit is $2.50. Fixed selling and administrative expenses include advertising expenses of $8,000 per quarter, executive salaries of $35,000 per quarter, and depreciation of $20,000 per quarter. In addition, the company will make insurance payments of $5,000...

Assume a company’s sales budget for April and May is 35,000 units and 37,000 units, respectively....

Assume a company’s sales budget for April and May is 35,000 units and 37,000 units, respectively. Its production budget for the same two months is 32,000 units and 33,000 units, respectively. Each unit of finished goods required 4 pounds of raw materials. The company always maintains raw materials inventory equal to 10% of the following months production needs. Also assume the company pays $2.20 per pound of raw material. It always pays for 50% of its raw material purchases in...

Exercise 8-6 Selling and Administrative Expense Budget [LO8-7] Weller Company's budgeted unit sales for the upcoming...

Exercise 8-6 Selling and Administrative Expense Budget [LO8-7] Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 21,000 28,000 19,000 19,000 The company’s variable selling and administrative expense per unit is $2.00. Fixed selling and administrative expenses include advertising expenses of $14,000 per quarter, executive salaries of $41,000 per quarter, and depreciation of $20,000 per quarter. In addition, the company will make insurance payments of...

Exercise 8-23 Absorption and Variable Costing (LO 8-1, 8-4) Pandora Pillow Company’s planned production for the...

Exercise 8-23 Absorption and Variable Costing (LO 8-1, 8-4) Pandora Pillow Company’s planned production for the year just ended was 22,100 units. This production level was achieved, but only 18,700 units were sold. Other data follow: Direct material used $ 663,000 Direct labor incurred 329,290 Fixed manufacturing overhead 472,940 Variable manufacturing overhead 201,110 Fixed selling and administrative expenses 375,700 Variable selling and administrative expenses 127,075 Finished-goods inventory, January 1 None The cost per unit remained the same in the current...

The following information is for X Company for 2017: Master Actual Budget Results Production 10,900 units...

The following information is for X Company for 2017: Master Actual Budget Results Production 10,900 units 12,000 units Total variable costs $99,190 $108,226 Total fixed costs $197,300 $201,669 1. What was the 2017 master (static) budget for total costs? 2. What was the 2017 flexible budget for total costs?

The following static budget is provided: Static Budget Per Unit Total at 15,000 units Sales $60...

The following static budget is provided: Static Budget Per Unit Total at 15,000 units Sales $60 $900,000 Less variable costs: Manufacturing costs (30) (450,000) Selling and administrative costs (10) (150,000) Contribution margin $20 $300,000 Less fixed costs: Manufacturing costs (75,000) Selling and administrative costs (125,000) Total fixed costs (200,000) Net income $100,000 A. What will be the net income at flexible budget at 13,000 units produced and sold? B. What will be the flexible budget contribution margin when 13,000 units...

Exercise 23-6 Lewis Company’s standard labor cost of producing one unit of Product DD is 3.1...

Exercise 23-6 Lewis Company’s standard labor cost of producing one unit of Product DD is 3.1 hours at the rate of $12.7 per hour. During August, 42,200 hours of labor are incurred at a cost of $12.80 per hour to produce 13,500 units of Product DD. (a) Compute the total labor variance. Total labor variance $ Unfavorable Favorable Neither favorable nor unfavorable (b) Compute the labor price and quantity variances. Labor price variance $ Favorable Neither favorable nor unfavorable Unfavorable...

Subjects