: Managerial Accounting Odd Semester 2017/2018 : December 4, 2017 120 minutes (2
ID: 2561158 • Letter: #
Question
: Managerial Accounting Odd Semester 2017/2018 : December 4, 2017 120 minutes (2 hours) Quiz Date Aiphabetical Corp. began its operations on January 1, 2017. lts management wants to prepare operational budgets for its product The expected sales units for these products in 2017 and 2018 as follows YEAR: 2018 55,000 60.000 10,000 March12,000 February- 15,000 February67.000 March 75.000 83.000 90,000 100,000 110,000 122,000 135,000 18,000 Apml22,000 June 25,000 28,000 June 40,000 45,000 50,000 November 160,000 The following data pertain to production specifications and inventory policies a. The selling price per unit is $20 in 2017. The price will increase to $25 per unit in 2018 b. c. The ending inventory of finshed goods polcys20% of next month's unt sold. The materia's named mietal strip and glass sheet Data on direct materials used as follows: Per unit usage Cost requires two Ending inventory policy 2.5 foot 0.3 sheet Metal stip Glass sheet S 2/ feet 20 percent of next month's production needs $10/sheet 10 percent of next month's production needs d. The product requires two types of direct labor assembly and fnishing. Data on direct labor as follows Labor types Per unit usage Cost 04 hours $ 10/hour 02 hours $ 12/hour Finishing e. The overhead is allocated based on total direct labor hours. The variable overhead rate per direct labor hour is $8 and the monthly fixed overhead costs are $30,000. t Monthly selling&administrative; expenses are $8,000 for each product type. The commissions are $2 per unit sold g. Income tax rate is 20%. Prepare Alphabetical's budgets for Month- April-June 2018 m , Year The operational budgets consist of 1. Sales budget 2. Production budget, provide the ending finished goods inventory calculation for each month 3. Direct materials purchased budget for each type of material, provide the ending direct materials inventory caiculation for each month 4. Direct labor budget for each type of labor 5. Manufacturing overhead budget 6. Selling and administrative expenses budget 7. Projected income statement, provide the calculation of production cost per unitExplanation / Answer
Description Apr-18 May-18 Jun-18 Jul-18 Aug-18 Units Sold 75,000 83,000 90,000 100,000 110,000 Selling Price PU $25 $25 $25 1Q. Sales Budget $1,875,000 $2,075,000 $2,250,000 Material Cost PU - A $8.00 $8.00 $8.00 Material Cost $600,000 $664,000 $720,000 Assembly - Hour $4.00 $4.00 $4.00 Finishing - Hours $2.40 $2.40 $2.40 Labour Cost PU - B $6.40 $6.40 $6.40 Assembly Labour Cost $300,000 $332,000 $360,000 Finishing Labour Cost $180,000 $199,200 $216,000 4Q. Labour Budget $480,000 $531,200 $576,000 Variable OH Cost PU - C $4.80 $4.80 $4.80 Variable OH Cost $360,000 $398,400 $432,000 Fixed OH $30,000 $30,000 $30,000 5Q. Manufacturing OH Budget $390,000 $428,400 $462,000 Production Cost PU - D(A+B+C) $19.20 $19.20 $19.20 Material Requirement PU Usage Cost Cost PU Metal Strip - Foot 2.50 $2.00 $5.00 Glass Sheet - Sheet 0.30 $10.00 $3.00 $8.00 Labour Requirement PU Usage Cost Cost PU Assembly - Hour 0.40 $10.00 $4.00 Finishing - Hours 0.20 $12.00 $2.40 $6.40 Variable OH PU Usage Cost Cost PU Assembly 0.40 $8.00 $3.20 Finishing 0.20 $8.00 $1.60 $4.80 Production Units 80% of Current month Sales 60,000 66,400 72,000 80,000 20% of Next month Sales 16,600 18,000 20,000 22,000 Production Units 76,600 84,400 92,000 102,000 Opening Inventory 15,000 16,600 18,000 Closing Inventory 16,600 18,000 20,000 2Q. Production Budget $1,470,720 $1,620,480 $1,766,400 Opening Inventory Value $288,000 $318,720 $345,600 Closing Inventory Value $318,720 $345,600 $384,000 Changes in Inventories ($30,720) ($26,880) ($38,400) Direct Material Requirement Metal Strip Units 80% of current month production 153,200 168,800 184,000 20% of next month production 42,200 46,000 51,000 Procurement 195,400 214,800 235,000 Opening Inventory 38,300 42,200 46,000 Closing Inventory 42,200 46,000 51,000 Procurement Value $390,800 $429,600 $470,000 Opening Inventory Value $76,600 $84,400 $92,000 Closing Inventory Value $84,400 $92,000 $102,000 Glass Sheet Units 90% of current month production 20,682 22,788 24,840 10% of next month production 2,532 2,760 3,060 Procurement 23,214 25,548 27,900 Opening Inventory 2,298 2,532 2,760 Closing Inventory 2,532 2,760 3,060 Procurement Value $232,140 $255,480 $279,000 Opening Inventory Value $22,980 $25,320 $27,600 Closing Inventory Value $25,320 $27,600 $30,600 3Q. Direct Materials Budget $622,940 $685,080 $749,000 Opening Inventory Value $99,580 $109,720 $119,600 Closing Inventory Value $109,720 $119,600 $132,600 RM Consumption $612,800 $675,200 $736,000 S&A Expenses $2 Per Unit Sold $150,000 $166,000 $180,000 Fixed OH $8,000 $8,000 $8,000 6Q. Selling & Admin Budget $158,000 $174,000 $188,000 7Q. Income Statement Apr-18 May-18 Jun-18 Sales $1,875,000 $2,075,000 $2,250,000 RM Consumed ($612,800) ($675,200) ($736,000) Changes in inventories ($30,720) ($26,880) ($38,400) Direct Labour ($480,000) ($531,200) ($576,000) Direct OH ($360,000) ($398,400) ($432,000) Contribution $391,480 $443,320 $467,600 Manufacturing OH ($30,000) ($30,000) ($30,000) Selling and Admin OH ($158,000) ($174,000) ($188,000) ($188,000) ($204,000) ($218,000) Profit $203,480 $239,320 $249,600
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