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VETTEL - On L Insert Draw Page Layout Formulas Data Review View Tell m PROTECTED

ID: 2566976 • Letter: V

Question

VETTEL - On L Insert Draw Page Layout Formulas Data Review View Tell m PROTECTED VIEW Be careful.-files from the Internet can contain wirusts:UInles ou need to 120 4A 1REQUIREMENTS 3 Prepare, in good form, a Master Budget which includes the following: 41) Sales Budget 5-12) Production Budget 6 3) Direct Materials Purchases Budget 7 4) Direct Labour Cost Budget 8 5) Factory Overhead Cost Budget 6) Selling and Administrative Expenses Budget 107) Budgeted Income Statement 11 8) Schedule of Collections from Sales 12 9) Schedule of Payments for Manufacturing Costs 13 10) Cash Budget 14 15 All budgets should be for the individual three (3) months of the first quarter of 2017 16 Include a guarterly total column on the right side.(except for #Z and #101....-

Explanation / Answer

VETTEL MANUFACTURING, INC.

Sales Budget

For the Quarter ended March 31, 2017

Jan

Feb

Mar

Quarter

Estimated sales - Units

7,450

7,090

8,320

22,860

Selling Price -per unit

$68.99

$68.99

$68.99

$68.99

Estimated Sales - in dollars

$5,13,975.50

$4,89,139.10

$5,73,996.80

$15,77,111.40

VETTEL MANUFACTURING, INC.

Production Budget

For the Quarter ended March 31, 2017

Jan

Feb

Mar

Quarter

April

May

Estimated sales - Units

7,450

7,090

8,320

22,860

9,070

10,120

Add: Ending Inventory - 23% of next month’s sales

1,631

1,914

2,086

2,086

2,328

    Total Units required

9,081

9,004

10,406

24,946

11,398

Less: Beginning Inventory

1,714

1,631

1,914

1,714

2,086

Units to be manufactured

7,367

7,373

8,493

23,232

9,312

VETTEL MANUFACTURING, INC.

Direct Materials Purchases Budget

For the Quarter ended March 31, 2017

Jan

Feb

Mar

Quarter

April

Units to be manufactured

7,367

7,373

8,493

23,232

9,312

Material needed - per unit

2.83

2.83

2.83

2.83

2.83

Material needed for production

20,848

20,865

24,034

65,747

26,352

Add: Desired Ending Inventory - 25% of next month's requirement

5,216

6,008

6,588

6,588

Total Material needed for production

26,064

26,874

30,622

72,335

Less: Beginning Inventory

5,213

5,216

6,008

5,213

Material to be purchased

20,851

21,657

24,613

67,122

Material cost - per unit

$1.38

$1.38

$1.38

$1.38

Material cost for the month

$28,775

$29,887

$33,966

$92,628

VETTEL MANUFACTURING, INC.

Direct Labour Cost Budget

For the Quarter ended March 31, 2017

Jan

Feb

Mar

Quarter

Units to be manufactured

7,367

7,373

8,493

23,232

Labor hours needed per unit

1.75

1.75

1.75

1.75

Total Labor hours required

12,892

12,903

14,862

40,656

Labor cost - per hour

$12.25

$12.25

$12.25

$12.25

Total Labor cost for the month

$1,57,924

$1,58,057

$1,82,058

$4,98,038

VETTEL MANUFACTURING, INC.

Sales Budget

For the Quarter ended March 31, 2017

Jan

Feb

Mar

Quarter

Estimated sales - Units

7,450

7,090

8,320

22,860

Selling Price -per unit

$68.99

$68.99

$68.99

$68.99

Estimated Sales - in dollars

$5,13,975.50

$4,89,139.10

$5,73,996.80

$15,77,111.40

VETTEL MANUFACTURING, INC.

Production Budget

For the Quarter ended March 31, 2017

Jan

Feb

Mar

Quarter

April

May

Estimated sales - Units

7,450

7,090

8,320

22,860

9,070

10,120

Add: Ending Inventory - 23% of next month’s sales

1,631

1,914

2,086

2,086

2,328

    Total Units required

9,081

9,004

10,406

24,946

11,398

Less: Beginning Inventory

1,714

1,631

1,914

1,714

2,086

Units to be manufactured

7,367

7,373

8,493

23,232

9,312

VETTEL MANUFACTURING, INC.

Direct Materials Purchases Budget

For the Quarter ended March 31, 2017

Jan

Feb

Mar

Quarter

April

Units to be manufactured

7,367

7,373

8,493

23,232

9,312

Material needed - per unit

2.83

2.83

2.83

2.83

2.83

Material needed for production

20,848

20,865

24,034

65,747

26,352

Add: Desired Ending Inventory - 25% of next month's requirement

5,216

6,008

6,588

6,588

Total Material needed for production

26,064

26,874

30,622

72,335

Less: Beginning Inventory

5,213

5,216

6,008

5,213

Material to be purchased

20,851

21,657

24,613

67,122

Material cost - per unit

$1.38

$1.38

$1.38

$1.38

Material cost for the month

$28,775

$29,887

$33,966

$92,628

VETTEL MANUFACTURING, INC.

Direct Labour Cost Budget

For the Quarter ended March 31, 2017

Jan

Feb

Mar

Quarter

Units to be manufactured

7,367

7,373

8,493

23,232

Labor hours needed per unit

1.75

1.75

1.75

1.75

Total Labor hours required

12,892

12,903

14,862

40,656

Labor cost - per hour

$12.25

$12.25

$12.25

$12.25

Total Labor cost for the month

$1,57,924

$1,58,057

$1,82,058

$4,98,038