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

ekkarill92 answered 2 years ago
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