Required Information [The following information applies to the questions display
ID: 2552345 • Letter: R
Question
Required Information [The following information applies to the questions displayed below Vista Electronics, Inc. manufactures two different types of colls used In electric motors. In the fall of the current year, Erica Becker, the controller, complled the following data. Sales forecast for 20x0 (all units to be shipped In 20x0): Product Light coil Heavy coil Units Price 58,8e8 28e 38,8e8 380 Raw-material prices and Inventory levels: Desired Inventories, December 31, 28x8 32,808 1lb 28,808 1b Anticipated Purchase Price Expected Inventories, Raw Material Sheet metal Copper wire Platform January 1, 28x8 28,88e lb 25, 8 lb $ 17 5,8ae units 6,808 units Use of raw materlal: . Amount Used per Unit Raw Material Sheet metal Copper wire Platform Heavy Coil 4 1b 2 1b 2 unit Light Coil 3 1b 1 1b . DIrect-labor requirements and rates: ProductHours per Unit Light coil Heavy coil Rate per Hour s 18 15 .Finished-goods Inventories (In units): Expected January Desired December 31 Product Light coil Heavy coil 1, 28xe 15,808 8,58e 28x9 28,8e8 9,580 Production overhead Purchasing and material handling Depreciation, utilities, and inspection Shipping General production overhead $8.68 per pound of sheet metal and copper wire purchased $5.88 per coil produced (either type) $1.80 per coil shipped (either type) $3.80 per direct-labor hourExplanation / Answer
1.
Sales Budget 20X0
Total
Light coil(50,000 x 200)
$ 10,000,000
Heavy coils (30,000 x 300)
$ 9,000,000
Projected sales
$ 19,000,000
2.
Production Budget (in units) for 20X0
Light Coil
Heavy Coil
Projected sales
50,000
30,000
Add: Ending inventory
20,000
9,500
Total requirements
70,000
39,500
Less: Beginning inventory
15,000
8,500
Production required (units)
55,000
31,000
3.
Sheet Metal required for 55,000 Light coil = 55,000 x 3 lb = 165,000 lb
Sheet Metal required for 31,000 Heavy coil = 31,000 x 4 lb = 124,000 lb
Copper Wire required for 55,000 Light coil = 55,000 x 1 lb = 55,000 lb
Copper Wire required for 31,000 Heavy coil = 31,000 x 2 lb = 62,000 lb
Platform required for 31,000 Heavy coil = 31,000 x 2 units = 62,000 units
Raw Material Purchase Budget (In Quantities) for 20X0
Raw Material
Sheet Metal (lb)
Copper Wire (lb)
Platform (units)
Light coil
165,000
55,000
0
Heavy coil
124,000
62,000
62,000
Production requirement
289,000
117,000
62,000
Add: Ending inventory
32,000
28,000
6,000
Total requirements
321,000
145,000
68,000
Less: Beginning inventory
28,000
25,000
5,000
Purchase requirement (in units)
293,000
120,000
63,000
4.
Raw Material Purchase Budget for 20X0
Raw Material
Raw Material Required (units)
Anticipated Purchase Price
Total
Sheet Metal
293,000
$ 17
$ 4,981,000
Copper Wire
120,000
$ 8
$ 960,000
Platform
63,000
$ 4
$ 252,000
Total
$ 6,193,000
**** Answered first four questions.
Sales Budget 20X0
Total
Light coil(50,000 x 200)
$ 10,000,000
Heavy coils (30,000 x 300)
$ 9,000,000
Projected sales
$ 19,000,000
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