Nancy Inc. has the following data to prepare budgets for 2023: Budgeted Sales units: 1st Qtr 8,000; 2nd Qtr 8,500; 3rd Qtr 9,000, 4th Qtr 9,500 Selling price per unit is $35 • Desired Ending Finished Goods Inventory: 18% of next Qtr Sales • Desired Ending Raw Material Inventory: 23% of next Qtr Production Beginning Inventory Balances for Production and Material follow the same percentage relationships • Each unit requires 2 pounds of material, at $5 per pound • Each unit requires 1.5 hours of labor, at $10 an hour ●

Nancy Inc. has the following data to prepare budgets for 2023: Budgeted Sales units: 1st Qtr 8,000; 2nd Qtr 8,500; 3rd Qtr 9,000, 4th Qtr 9,500 Selling price per unit is $35 • Desired Ending Finished Goods Inventory: 18% of next Qtr Sales • Desired Ending Raw Material Inventory: 23% of next Qtr Production Beginning Inventory Balances for Production and Material follow the same percentage relationships • Each unit requires 2 pounds of material, at $5 per pound • Each unit requires 1.5 hours of labor, at $10 an hour ●

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 1PA

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The Budget Committee is now ready with the budget estimates for the preparation of the Operating Budget of YAKANG-YAKA Company for the year 2022. The following data were preseted below: Finished Product Model B 8,000 P 140 Model M 5,000 P 170 Budget sales-units Selling price per unit Inventory, Beginning in units Expected inventory end in units 850 600 700 500 Inventory, Beginning in units Expected inventory end in units Material MI 5,000 5,500 Material M2 4,000 5,000 Material M3 3,000 3,600 Model B Model M 4 units 3 units 3 units 15 hours Material Content of each unit: Material M1 Material M2 Material M3 Direct labor hours per unit 6 units 4 units 2 units 10 hours Overhead is applied based on 100% of direct labor hours. Budgeted unit costs: Material M1 Material M2 per unit Material M3 2.50 per unit Direct labor P2.00 Р.00 per uniti 3.00 per hour Other budgeted data based on production are shown below: Factory Overhead: Indirect labor Factory supplies Repairs and maintenance Other…
Lily Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the data shown below. Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost Product JB 50 336,000 $25 25,200 21,000 2 25,200 33,600 $3 0.4 $12 $13 Product JB 60 168,000 $30 12,600 8,400 3 8,400 12,600 $4 0.6 $12 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $470,400 for product JB 50 and $302,400 for product JB 60, and administrative expenses of $453,600 for product JB 50 and $285,600 for product JB…
1. ABC Company is budgeting sales of 110,000 units of Product R for the month of November 2023. Production of one unit of R requires two units of Material A and three units of Material B. Actual inventory units on November 1 and budgeted inventory units on November 30 are as follows: Actual inventory November 1 Budgeted inventory at November 30 20,000 10,000 18,000 25,000 22,000 24,000 How many units of Material A is ABC planning to purchase during November 2023? Show your solution. 2. Ashton Appliances Inc. is preparing a budget for 2024 by quarters. Budget data appear as follows: Product R Material A Material B 1st quarter 2nd quarter 3rd quarter 4th quarter 1st quarter, 2025 Budgeted sales Materials purchases Beginning materials P860,000 940,000 990,000 960,000 $280,000 360,000 400,000 300,000 P75,000 65,000 50,000 45,000 40,000 Direct labor is budgeted at P140,000 each quarter with factory overhead estimated at 200 percent of direct labor costs. Selling and general expenses are…
Please help me with the functions for this ! Thank you! Jay Corporation has decided to prepare contribution income statements for internal planning. Budgeted information for Quarter 1 of 2024: Sales in units 17,000 Sales price per unit $48.00 After analyzing expenses, the company has determined the following cost patterns. Cost of Goods Sold (per unit) $29.00 Sales Commissions (per dollar of sales) 9.50% Administrative Salaries (per quarter) $45,000 Rent Expense (per quarter) $27,000 Depreciation Expense (per quarter) $36,000 Shipping has been determined to be a mixed cost with the following total costs and units: 2022 Total Cost Units Quarter 1 $67,000 12,500 Quarter2 $94,000 21,000 Quarter 3 $89,800 13,800 Quarter 4 $92,600 20,000 2023 Quarter 1 $72,500 13,700 Quarter2 $80,000 14,000 Quarter 3 $84,000 14,300 Quarter…
1. AL Jamat Inc. is preparing its annual budgets for the year ending December 31, 2020.Accounting assistants furnish the data shown below. Detail Product AProduct C Sales Budget Anticipated Volume in units Unit Selling price Production Budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost 40500 20500 55 45 2500 1500 3000 1000 20 30 3000 1500 4000 1000 3 0.4 0.6 122 155 122 222 has prepared An accounting assistant manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $645,000 for product A and $345,000 for product C, and administrative expenses of $545,000 for product A and $345,000 for product C. Income taxes are expected to be the detailed…
Target Corporation had the following budgeted sales: 2024 June July August September October Units 2,200 2,500 2,000 1,700 1,600 The following additional information was given: Ending Finished Goods Inventory on May 31, 2024 was: Direct Materials per Finished Good Unit: Average Cost per Pound of Direct Material: Finished Goods Inventory should be: Direcet Materials inventory should be: Ending Direct Materials Inventory on May 31, 2024 was: 2,100 Units 3 Pounds of Direct Material $5 per Pound 20% Next Month's Anticipated Sales 30% Pounds Needed for Next Month's Production 9,090 Pounds of Direct Material Calculate the amount of required production of finished goods units for the month of August 2024. Round to the nearest whole number (ex. 2004-200: 200.5-201) Only enter numbers into answer space, do not enter anything other than numbers.
shown below are the totals from 2018 period budgets. Revenue badget P 100,000 Materials usage from production budget 15,000 Labor cost budget 20,000 Manufacturing overhead budget 20,000 General and administrative budget 30,000 Capital Expenditure budget 20,000 Work in progress inventories Beginning of 2018 10,000 End of 2018 5,000 Finished goods inventory Beginning of 2018 15,000 End of 2018 10,000 Tax Rate 40% 1. prepared a forecasts income statement for the year.
The followings are the budget for next financial year (1 January 2023 - 31 December 2023), indicating the average selling price and variable costs of each product category. The common fixed manufacturing overhead and the fixed non-manufacturing overhead costs are estimated to be $1,250,000 and $2,778,320 respectively. Table 1: Budget Jan - Dec 2023 Sales Quantity (in units) In $ Unit selling price Unit production cost Unit selling & admin variable costs (5% of selling price) In $ Revenue Variable Production Costs Selling & Admin Variable Costs Model 1 8,400 600 250 30 Folding Bike Model 2 7,500 400 180 20 Model 3 3,500 480 200 24 Electric Bike 800 2,000 850 100 Total 20,200 5,040,000 3,000,000 1,680,000 1,600,000 11,320,000 (2,100,000)| (1,350,000)| (700,000)| (680,000)| (4,830,000) (252,000) (150,000) (84,000) (80,000) (566,000) Q1. Based on the above budgeted information, calculate the expected breakeven units for the Model 2 folding bikes.
Shown below are the totals from 2025 period budgets. Revenue budget $100,000 Materials usage from production budget 15,000 Labor cost budget 20,000 Manufacturing overhead budget 20,000 General and administrative budget 30,000 Capital expenditure budget 20,000 Work in Progress Inventories Beginning of 2002 10,000 End of 2002 5,000 Finished Goods Inventory Beginning of 2002 15,000 End of 2002…
The SK Industries, Inc. manufactures and sells two products, Accel Active and Accel Regular. In September 2018, SK Industries Budget Department gathered the following data in order to prepare budgets for 2019: 2019 Projected Sales Product Accel Active 45,000|s225 |Units Price Accel Regular 75,000s1ss Expected Target Inventories Product January 1, 2019 December 31, 2019 Accel Active 9,000 12,000 Accel Regular 17,000 25,000 The following direct materials are expected to be used in the two products: |Material Used per Unit Direct Material Unit Accel Active Accel Regular pound One 6. 4 Two pound 4 Three pound 2 Projected data for 2019 with respect to direct materials are as follows: Direct Material Expected Purchase PriceExpected Inventories Target Inventories (January 1, 2019) (December 31, 2019) One $15 27,000 Ib 35,000 lb Two S7 30,000 lb 35,000 lb Three $4 4,000 lb 7,000 lb Projected direct labor requirements and rates for 2019 are as follows: Product Accel Active Hours Per Unit Rate…
Bolden Company prepared the following budgeted income statement for 2025: 1(Click the icon to view the budgeted income statement.) Read the requirements2. Requirement 1. Prepare a budgeted income statement with columns for 1,300 units, 1,400 units, and 1,900 units sold. Bolden Company Budgeted Income Statement For the Year Ended December 31, 2025 Unit sales 1,300 Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses Operating Income 1,400 1,900 Requirement 2. How might managers use this type of budgeted income statement? The budgeted income statement prepared in Requirement 1 is a (1) budget. It allows Bolden's managers to plan for (2) sales level(s). Requirement 3. How might spreadsheet software such as Excel assist in this type of…
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