Question

Snowcome Company estimates that quarterly unit sales will increase by 15% assuming a unit selling price of $30. Prepare a Sales Budget Quarterly for the upcoming year, 2018. Last Years quarterly sales figures are

Sales 2017
Q1- 75076
Q2- 70041
Q3- 65081
Q4- 80037

2. Snowcome would like to have an ending inventory of finished goods equal to 10% of expected sales for the following period. Assuming the ending inventory of finished goods on December 31, 2017 is 8,500 units. Projected sales for the 1st quarter of 2019 are 86,250. Prepare a Production Budget for 2018.

3.Four units of raw materials are required to produce one unit of finished product. Snowcome has established a policy that 20% of the raw materials needed for the next quarters production wil be on hand at the end of each quarter. Assuming a beginning inventory of 76,500 units of raw materials and raw materials cost 2$ per unit; units to be produced for the 1st quarter of 2019 are 86,450 Prepare a direct materials budget.

4. It takes 1.6 labor hours to produce 1 unit Direct Labor cost is 8$ per hour. Prepare a direct labor budget. Works generally work 480 hours per quarter, no overtime is allowed.

5. Snowcome estimates following Manufacturing OH cost.
Var. Indirect materials cost per finished unit 1.50
Var. Indirect labor cost per finished unit 1.25
Var. Utilities cost per finished unit 0.85
Fixed cost for indirect labor per quarter 75,076
Fixed cost for deprec. per quarter 18,041
Fixed cost for other items per quarter 7,581
Prepare a manufacturing overhead budget.

6. Snowcome will have the following selling and general administrative expenses for 2018
Sales commision salaries of 10% of sales
Advertising salaries 340,076
Deprec. and Office equipt. 24,041
Office manager salary 50,081

Prepare a sellling expense budget and general administrative budget.


THANKS IN ADVANCE

Answer 1