Question
In: Accounting
Tanghang Industries production budget from the 2nd quarter of 2018, projected the following amounts of units...
Tanghang Industries production budget from the 2nd quarter of 2018, projected the following amounts of units to be produced:
April 1,100 units
May 1,250 units
June 1,300 units
Each unit requires 2 parts of component A and 3 parts of component B. Component A cost is $1.15 per unit and component B cost is $.85 per unit.
Calculate the Direct Material budgeted cost for May 2018
Calculate the Direct Material budgeted cost for the quarter April - June 2018
The raw materials inventory policy is 0 ending inventory, 0 beginning inventory. How much inventory of component A is required in April 2018?
Each unit requires the following labor:
2 hours in the processing department
1 hour in the assembly department
Processing department labor rate is $5/hour
Assembly department labor rate is $7/hour
Using the information from the production budget of Tangshang Industries
Calculate Total Direct Labor Cost in the processing department for the quarter April – June 2018.
Calculate Total Direct Labor Cost for June 2018.
Calculate Total Direct Labor Cost for the quarter April – June 2018.
Variable Factory overhead is $.60 per unit
Fixed Factory overhead is $1,000 monthly
Using the information from the production budget of Tangshang Industries
Calculate total variable overhead cost for May 2018
Calculate total variable overhead cost for the quarter April - June 2018
Calculate total overhead cost for the quarter April - June 2018
Calculate total product cost for the quarter April - June 2018
Calculate total product cost per unit for the quarter April - June 2018
If the sale price is $34.00, what will be the Gross Profit per unit?
If the sale price is $34.00 for the units produced during the quarter, what will be the Total Gross Profit?
Solutions
Expert Solution
| Ans 1 | |||
| Direct material Budget cost for May 2018 | |||
| Budgeted production units | 1250 | ||
| Component A | 2 | ||
| Component B | 3 | ||
| Components required | Cost per component | Budgeted cost | |
| Component A (2*1250) | 2500 | $1.15 | $2,875.00 |
| Component B | 3750 | 0.85 | $3,187.50 |
| Total Budgeted cost | $6,062.50 | ||
| ans 2 | Component A | Component B | |
| 2 | 3 | ||
| Budgeted production units | |||
| April | 1100 | 2200 | 3300 |
| May | 1250 | 2500 | 3750 |
| June | 1300 | 2600 | 3900 |
| Total components | 7300 | 10950 | |
| Cost per component | 1.15 | 0.85 | |
| Total Budgeted cost | 17702.5 | 8395.0 | 9307.5 |
| Total Budgeted cost for qtr | 17702.5 | ||
| ans 3 | |||
| Inventory of raw material required is | |||
| Opening+purchases-ending inventory | |||
| As opening and ending is $0 hence | |||
| Component A | 2200 | ||
| Component B | 3300 | ||
| ans 4 | |||
| working | Processing | Assembly | |
| 2 | 1 | ||
| Budgeted production units | |||
| April | 1100 | 2200 | 1100 |
| May | 1250 | 2500 | 1250 |
| June | 1300 | 2600 | 1300 |
| Total components | 7300 | 3650 | |
| Labor rate | 5 | 7 | |
| Total Budgeted cost | 62050.0 | 36500.0 | 25550 |
| Total direct labor cost for processing dept qtr | 36500.0 | ||
| ans 5 | |||
| Total direct labor cost for June | 22100 | ||
| (2600*5)+(1300*7) | |||
| ans 6 | |||
| Total direct labor cost for qtr | 62050.0 | ||
| ans 7 | |||
| Variable overhead cost for May | |||
| 1250*.6 | 750 | ||
| ans 8 | |||
| Toatl variable overehad cost for qtr | |||
| 3650*.6 | 2190 | ||
| ans 9 | |||
| Total overhead cost | |||
| 2190+3000 | $5,190 | ||
| ans 10 | |||
| Total product cost for the qtr | |||
| 17702.5+62050+5190 | $84,942.50 | ||
| if rounded off | $84,943 | ||
| ans s 11 Total product cost per unit | |||
| 84943/3650 | 23.27 | ||
| ans 12 | |||
| Gross profit=34-23.27 | 10.73 | ||
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