Question

In: Accounting

The Y Co. has a division that manufactures bicycles. Its budgeted sales for Model G in...

The Y Co. has a division that manufactures bicycles. Its budgeted sales for Model G in 2018 are 4750 units.​ Y’s target ending inventory is 350​ units, and its beginning inventory is 550 in units and 165000 in dollar. The​ company’s budgeted selling price to its distributors and dealers is​ $300 per bicycle. Y buys all its wheels from an outside supplier. No defective wheels are accepted.​ Y’s needs for extra wheels for replacement parts are ordered by a separate division of the company. The​ company’s target ending inventory is 700​ wheels, and its beginning inventory is 800 wheels. The budgeted purchase price is​ $50 per wheel.

The budgeted manufacture labor cost per hour is​ $20/hr. The direct manufacturing labor needed for manufacturing one bicycle is 4 hours.

Manufacturing overhead​ (both variable and​ fixed) is allocated to each bicycle on the basis of budgeted direct manufacturing​labor-hours per bicycle. The budgeted variable manufacturing overhead rate for 2018 is​ $15 per direct manufacturing​labor-hour. The budgeted fixed manufacturing overhead for 2018 is​ $250000. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods.

Required

1. Compute the budgeted revenues in​ dollars:$

2. Compute the number of bicycles that Y Co. should​ produce:

3. Compute the budgeted uses of wheels in​ units: & in dollars:

4. Compute the budgeted purchases of wheels in ​units: & in dollars:

5. Compute direct manufacturing labor costs​ budget: $

6. Compute variable manufacturing overhead costs​ budget: $

7. Compute total manufacturing overhead cost​ budget: $

8. Compute the budgeted cost of goods manufactured ​(neglect WIP​ inventory, FIFO ​method)​:

9. Compute the budgeted unit cost of product ​(Round your answer to the nearest i​nteger!!!)​:

10. Compute ending finish goods inventories budget in​ dollars(neglect WIP​ inventory, FIFO​ method), calculate your answer based on the ROUNDED answer of requirement 9​:

11. Compute cost of goods sold​ budget, calculate your answer based on the answer of requirement 10​ :

Solutions

Expert Solution


Related Solutions

Conglomerate Co. has two divisions. Division A manufactures widgets while Division B manufactures woblets. In the...
Conglomerate Co. has two divisions. Division A manufactures widgets while Division B manufactures woblets. In the production of widgets, one of the key components is a woblet and, hence, Division A could  source its woblets temporarily directly from Division B rather than going to the external market. The following data pertains to woblets:               Sales price $60.00 per woblet Direct materials 22.00 Direct labor 10.00 Variable overhead 6.00 Allocated fixed costs      12.00 Division A has asked Division B to supply 4,000 woblets. Currently,...
Conglomerate Co. has two divisions. Division A manufactures widgets while Division B manufactures woblets. In the...
Conglomerate Co. has two divisions. Division A manufactures widgets while Division B manufactures woblets. In the production of widgets, one of the key components is a woblet and, hence, Division A could source its woblets temporarily directly from Division B rather than going to the external market. The following data pertains to woblets: Sales price $60.00 per woblet Direct materials 22.00 Direct labor 10.00 Variable overhead 6.00 Allocated fixed costs 12.00 Division A has asked Division B to supply 4,000...
Michael’s Bicycles manufactures different types of bicycles: mountain, road, and youth. Sales of the road bikes...
Michael’s Bicycles manufactures different types of bicycles: mountain, road, and youth. Sales of the road bikes have fallen. The firm is considering two options: (1) drop the road bike line; or (2) replace the road bike line with fat tire bikes. Price and cost data are as follows: Mountain Road Youth Fat Tire Price/unit $400 $1200 $120 $600 Variable cost/unit $300 $600 $75 $400 Total Fixed costs $3,000,000 $2,500,000 $500,000 $1,000,000 Number of units 15,000 4,000 20,000 10,000 If the...
The Sendai Co., Ltd., of Japan has budgeted costs in its various departments as follows for...
The Sendai Co., Ltd., of Japan has budgeted costs in its various departments as follows for the coming year: Factory Administration $ 766,800 Custodial Services 275,640 Personnel 38,300 Maintenance 55,860 Machining—overhead 922,200 Assembly—overhead 777,800 Total cost $ 2,836,600 The company allocates service department costs to other departments in the order listed below. Department Number of Employees Total Labor- Hours Square Feet of Space Occupied Direct Labor- Hours Machine- Hours Factory Administration 28 — 14,200 — — Custodial Services 12 8,000...
The Sendai Co., Ltd., of Japan has budgeted costs in its various departments as follows for...
The Sendai Co., Ltd., of Japan has budgeted costs in its various departments as follows for the coming year: Factory Administration $ 819,840 Custodial Services 98,337 Personnel 26,358 Maintenance 170,555 Machining—overhead 1,126,484 Assembly—overhead 618,226 Total cost $ 2,859,800 The company allocates service department costs to other departments in the order listed below. Department Number of Employees Total Labor- Hours Square Feet of Space Occupied Direct Labor- Hours Machine- Hours Factory Administration 30 — 5,300 — — Custodial Services 11 15,900...
The Sendai Co., Ltd., of Japan has budgeted costs in its various departments as follows for...
The Sendai Co., Ltd., of Japan has budgeted costs in its various departments as follows for the coming year: Factory Administration $ 1,063,750 Custodial Services 125,540 Personnel 39,520 Maintenance 155,140 Machining—overhead 969,100 Assembly—overhead 875,450 Total cost $ 3,228,500 The company allocates service department costs to other departments in the order listed below. Department Number of Employees Total Labor- Hours Square Feet of Space Occupied Direct Labor- Hours Machine- Hours Factory Administration 27 — 11,700 — — Custodial Services 11 13,400...
Boston Pharmaceutical manufactures metal stents for heart patients and has budgeted sales (in units) for 2019...
Boston Pharmaceutical manufactures metal stents for heart patients and has budgeted sales (in units) for 2019 as follows: January: 50,000 February: 40,000 March 60,000 April: 50,000 May: 40,000 June: 60,000 July: 50,000 August: 40,000 Sept: 60,000 October: 50,000 Nov.: 40,000 Dec. 60,000 The company is in the process of preparing a production budget for 2019. Boston plans to maintain ending inventory levels equal to 10% of the following month's sales. The ending inventory at the end of 2018 was 5,000...
ABC Company has budgeted sales for the next six months as follows: Budgeted Sales in Units...
ABC Company has budgeted sales for the next six months as follows: Budgeted Sales in Units March 12,000 units April 24,000 units May 35,000 units June 13,000 units July 43,000 units August 69,000 units ABC Company sells its inventory to customers for $25 per unit. 30% of the company's sales are cash sales and the other 70% of sales are made on account. The sales on account are collected in the pattern: 35% collected in the month of sale 26%...
ABC Company has budgeted sales for the next six months as follows: Budgeted Sales in Units...
ABC Company has budgeted sales for the next six months as follows: Budgeted Sales in Units March 19,000 units April 23,000 units May 34,000 units June 17,000 units July 48,000 units August 69,000 units ABC Company sells its inventory to customers for $16 per unit. 30% of the company's sales are cash sales and the other 70% of sales are made on account. The sales on account are collected in the pattern: 35% collected in the month of sale 26%...
Eugen-Kay Construction Co. Ltd. expects credit sales of ¢24million in the next year and has budgeted...
Eugen-Kay Construction Co. Ltd. expects credit sales of ¢24million in the next year and has budgeted production costs as follows: ¢million Raw materials 4 Direct labour 5 Production overheads 3 Total production costs 12 Raw materials are in stock for an average of three weeks and finished goods are in stock for an average of four weeks. All raw materials are added at the start of the production cycle, which takes five weeks and incurs labour costs and production overheads...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT