mill corporation mill corporation mill corporation for May. Use E93A Budget Prep
ID: 2549507 • Letter: M
Question
mill corporation mill corporation mill corporation for May. Use E93A Budget Preparation Westport Company is preparing its master budget e provided to determine the amounts necessary for each of the following requirements be related to more than one requirement.) a. What should total sales revenue be if teriories E and W estimate sales of 50,000and 0a b. Ifthe beginning finished goods inventory is an estimated 7,000 units and the desired endingi c. What dollar amount of material should be purchased at $2 per pound if each unit of product and100m units, respectively, and the unit selling price is $27? ventory is 6,000 units, how many units should be produced? quires 2.5 pounds and beginning and ending materials inventories should be 13,500 and 1200 pounds, respectively? low much direct labor cost should be incurred if each unit produced requires 0.5 hous te hourly rate of $11? e. How much manufacturing overhead should be incurred if fixed manufacturing o ove S45,000 and variable manufacturing overhead is $1.30 per direct labor hour?Explanation / Answer
1-
total sales revenue
150000*27
4050000
2-
no of units produced
ending inventory+ units sold-openning inventory
6000+150000-7000
149000
3-
no of units produced
ending inventory+ units sold-openning inventory
12000+150000-135000
148500
Amount of material purchased
rate* material per unit* no of units produced
2*2.5*148500
742500
4-
total direct labor cost
units produced*labor hour per unit*labor rate
149000*.5*11
819500
5-
direct labor hours
units produced*labor hour per unit
149000*.5
74500
total manufacturing overheads
fixed manufacturing overheads+ variable manufacturing overheads
45000+(74500*1.30)
141850
1-
total sales revenue
150000*27
4050000
2-
no of units produced
ending inventory+ units sold-openning inventory
6000+150000-7000
149000
3-
no of units produced
ending inventory+ units sold-openning inventory
12000+150000-135000
148500
Amount of material purchased
rate* material per unit* no of units produced
2*2.5*148500
742500
4-
total direct labor cost
units produced*labor hour per unit*labor rate
149000*.5*11
819500
5-
direct labor hours
units produced*labor hour per unit
149000*.5
74500
total manufacturing overheads
fixed manufacturing overheads+ variable manufacturing overheads
45000+(74500*1.30)
141850
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