In: Accounting
Q1:
Below is budgeted production and sales information for Flushing Company for the month of December:
Product XXX | Product ZZZ | |
Estimated beginning inventory | 31,600 units | 17,100 units |
Desired ending inventory | 35,100 units | 14,200 units |
Region I, anticipated sales | 345,000 units | 279,000 units |
Region II, anticipated sales | 181,000 units | 147,000 units |
The unit selling price for product XXX is $6 and for product ZZZ is $13. Budgeted sales for the month are
$9,394,000
$8,694,000
$12,376,000
$5,712,000
Q2:
Below is budgeted production and sales information for Flushing Company for the month of December:
Product XXX | Product ZZZ | |
Estimated beginning inventory | 31,300 units | 16,100 units |
Desired ending inventory | 35,100 units | 15,300 units |
Region I, anticipated sales | 318,000 units | 251,000 units |
Region II, anticipated sales | 199,000 units | 142,000 units |
The unit selling price for product XXX is $7 and for product ZZZ is $16. Budgeted production for product ZZZ during the month is
408,300 units
392,200 units
583,400 units
393,000 units
Q3:
Magnolia, Inc. manufactures bedding sets. The budgeted
production is for 14,800 comforters this year. Each comforter
requires 7 yards of material. The estimated January 1 beginning
inventory is 4,350 yards with the desired ending balance of 6,100
yards of material. If the material costs $7.40 per yard, determine
the materials budget for the year.
$
Q4:
Sleep Tight, Inc. manufactures bedding sets. The budgeted production is for 30,200 comforters this year. Each comforter requires 1.5 hours to cut and sew the material. The cost of cutting and sewing labor is $16.70 per hour. Determine the direct labor budget for this year.
Q1 |
Product XXX |
Product ZZZ |
|||
Estimated beginning inventory |
31,600 units |
17,100 units |
|||
Desired ending inventory |
35,100 units |
14,200 units |
|||
Region I, anticipated sales |
345,000 units |
279,000 units |
|||
Region II, anticipated sales |
181,000 units |
147,000 units |
|||
Sales |
Product XXX |
Product ZZZ |
|||
$ 3,156,000.00 |
$ 5,538,000.00 |
||||
Total |
$ 8,694,000.00 |
||||
Correct Answer (B) |
$ 8,694,000.00 |
||||
Q2 |
Product ZZZ |
||
(A) Desired ending inventory |
15,300 |
||
(B) Region I, anticipated sales |
251,000 |
||
(C ) Region II, anticipated sales |
142,000 |
||
(D) Estimated beginning inventory |
16,100 |
||
(A+B+C-D) Desired Production |
392,200 |
Correct Answer (B) |
392200 Units |
Q3 |
Material Budget |
|
Production units |
14800 |
|
Yards required per Unit |
$ 7.00 |
|
Total Yards Needed for production |
103600 |
|
Add: Desired Ending Material Invemtory |
6100 |
|
Less: Opening Inventory |
4350 |
|
Total Purchases (Yards in Unit) |
105350 |
|
Cost per Yard |
$ 7.40 |
|
Total value of Purchases |
$ 779,590.00 |
Q4 |
Labor cost Budget |
|
Production units |
30200 |
|
Labor Hours per Unit |
1.5 |
|
Total Labour Hours required |
45300 |
|
Rate per Hour |
$ 16.70 |
|
Total Labor Cost |
$ 756,510.00 |