Problem 9.2 A(Part Lewa Submission) anc cloeted volume in on budjet Begnning nic
ID: 340975 • Letter: P
Question
Problem 9.2 A(Part Lewa Submission) anc cloeted volume in on budjet Begnning niched goDd uns 33,700 11,400 oer unt toounds) ,000 11,300 Coat par pound Direct labor budget O ret lebor 512 521 budut for th Exgected unt unit seing nce cal seles Pregare the profuct on budjet for the vear Prtpare the Girect mabeniais buget for the year d) Prwpare th.net labor budgat for the iuar. (Round Drect labor timu per unit amn 60 1 decimal place, 525.) eoare the budegeted mutoltep ncome statement for the rear, rwoce: noome taxes e not allocated to the ooducts),Explanation / Answer
Solution:
Part 1 – Sales Budget
Sales Budget
For the year ended Dec 31, 2017
JB 50
JB 60
Total
Expected Unit Sales
404,800
203,400
Unit Selling Price
$22
$27
Total Sales
$8,905,600
$5,491,800
$14,397,400
Part 2 –
Production Budget
For the year Ended Dec 31, 2017
JB 50
JB 60
Expected Units to be sold
404800
203400
Plus: Desired Ending finished goods units
29200
15100
Total Need
434000
218500
Less: Beginning Finished Goods Units
33700
11400
Total Units to be produced
400300
207100
Part 3 –
Direct Materials Purchases Budget
JB 50
JB 60
Total
Units to be produced (from part 2)
400300
207100
Required Direct materials per unit (pounds)
1
3
Total required direct materials
400300
621300
Plus: Desired ending direct materials pound
33600
15600
Total Need
433900
636900
Less: Beginning direct materials pound
41000
11300
Total units to be purchased
392900
625600
Cost per pound
$3.00
$3.00
Total direct materials to be purchased
$1,178,700
$1,876,800
$3,055,500
Note – Amount and figures in the question is not clear. So please check the correct amount. In case any difference please let me know.
Part 4 –
Direct labor Cost budget
JB 50
JB 60
Total
Units to be produced (from part 2)
400300
207100
Required Direct Labor time per unit
0.30
0.60
Total required direct labor time
120090
124260
Direct labor rate per hour
$11
$11
Total Direct labor cost
$1,320,990
$1,366,860
$2,687,850
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Pls ask separate question for remaining parts.
Sales Budget
For the year ended Dec 31, 2017
JB 50
JB 60
Total
Expected Unit Sales
404,800
203,400
Unit Selling Price
$22
$27
Total Sales
$8,905,600
$5,491,800
$14,397,400
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