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1. Platinum Trophy, Inc. projects sales of 45,000 brass plaques for 201X. The estimated January 1, 201X inventory is 3,000 units and the desired December 31, 201X inventory is 5,000 units. What is the budgeted production (in units) for 201X? 2. Platinum Trophy needs brass sheets to produce their brass plaques. Assume 96 square inches of brash sheet are required for each brass plaque. The estimated January 1, 201X, brass sheet inventory is 240,000 square inches. The desired December 31, 201X brass sheet inventory is 200,000 square inches. Platinum Trophy pays $0.12 per square inch. Using the budgeted production from the question 1, determine the direct materials purchases budget for 201X. 3. In addition to brass sheets, each plaque needs engraving. The amazing engraving artists on staff spend 12 minutes per plaque. Each engraving artist earns $11.00 per hour. Based on the budgeted production from question 1, determine the direct labor cost budget for 201X. 4. Assume the estimated finished goods inventory on January 1, 201X was $54,000. Desired finished goods inventory for December 31, 201X is $50,000. Assume the estimated WIP inventory on January 1, 201X was $47,000 while the desired WIP inventory on December 31, 201X is $49,000. After careful consideration and calculation, Platinum Trophy determines the Factory Overhead budget for 201X is $126,000. Based on the Direct Materials purchases budget and the direct labor cost budgets from above, create a Cost of Goods Sold budget for Platinum Trophy. 5. Platinum Trophy collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If sales on account are budgeted to be $100,000 for March and $126,000 for April, what are the budgeted cash receipts from sales on account for April?

1. Platinum Trophy, Inc. projects sales of 45,000 brass plaques for 201X. The estimated January 1, 201X inventory is 3,000 units and the desired December 31, 201X inventory is 5,000 units. What is the budgeted production (in units) for 201X? 2. Platinum Trophy needs brass sheets to produce their brass plaques. Assume 96 square inches of brash sheet are required for each brass plaque. The estimated January 1, 201X, brass sheet inventory is 240,000 square inches. The desired December 31, 201X brass sheet inventory is 200,000 square inches. Platinum Trophy pays $0.12 per square inch. Using the budgeted production from the question 1, determine the direct materials purchases budget for 201X. 3. In addition to brass sheets, each plaque needs engraving. The amazing engraving artists on staff spend 12 minutes per plaque. Each engraving artist earns $11.00 per hour. Based on the budgeted production from question 1, determine the direct labor cost budget for 201X. 4. Assume the estimated finished goods inventory on January 1, 201X was $54,000. Desired finished goods inventory for December 31, 201X is $50,000. Assume the estimated WIP inventory on January 1, 201X was $47,000 while the desired WIP inventory on December 31, 201X is $49,000. After careful consideration and calculation, Platinum Trophy determines the Factory Overhead budget for 201X is $126,000. Based on the Direct Materials purchases budget and the direct labor cost budgets from above, create a Cost of Goods Sold budget for Platinum Trophy. 5. Platinum Trophy collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If sales on account are budgeted to be $100,000 for March and $126,000 for April, what are the budgeted cash receipts from sales on account for April?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...
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1. Platinum Trophy, Inc. projects sales of 45,000 brass plaques for 201X. The estimated January 1, 201X inventory is 3,000 units and the desired December 31, 201X inventory is 5,000 units. What is the budgeted production (in units) for 201X? 2. Platinum Trophy needs brass sheets to produce their brass plaques. Assume 96 square inches of brash sheet are required for each brass plaque. The estimated January 1, 201X, brass sheet inventory is 240,000 square inches. The desired December 31, 201X brass sheet inventory is 200,000 square inches. Platinum Trophy pays $0.12 per square inch. Using the budgeted production from the question 1, determine the direct materials purchases budget for 201X. 3. In addition to brass sheets, each plaque needs engraving. The amazing engraving artists on staff spend 12 minutes per plaque. Each engraving artist earns $11.00 per hour. Based on the budgeted production from question 1, determine the direct labor cost budget for 201X. 4. Assume the estimated finished goods inventory on January 1, 201X was $54,000. Desired finished goods inventory for December 31, 201X is $50,000. Assume the estimated WIP inventory on January 1, 201X was $47,000 while the desired WIP inventory on December 31, 201X is $49,000. After careful consideration and calculation, Platinum Trophy determines the Factory Overhead budget for 201X is $126,000. Based on the Direct Materials purchases budget and the direct labor cost budgets from above, create a Cost of Goods Sold budget for Platinum Trophy. 5. Platinum Trophy collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If sales on account are budgeted to be $100,000 for March and $126,000 for April, what are the budgeted cash receipts from sales on account for April?
Transcribed Image Text:1. Platinum Trophy, Inc. projects sales of 45,000 brass plaques for 201X. The estimated January 1, 201X inventory is 3,000 units and the desired December 31, 201X inventory is 5,000 units. What is the budgeted production (in units) for 201X? 2. Platinum Trophy needs brass sheets to produce their brass plaques. Assume 96 square inches of brash sheet are required for each brass plaque. The estimated January 1, 201X, brass sheet inventory is 240,000 square inches. The desired December 31, 201X brass sheet inventory is 200,000 square inches. Platinum Trophy pays $0.12 per square inch. Using the budgeted production from the question 1, determine the direct materials purchases budget for 201X. 3. In addition to brass sheets, each plaque needs engraving. The amazing engraving artists on staff spend 12 minutes per plaque. Each engraving artist earns $11.00 per hour. Based on the budgeted production from question 1, determine the direct labor cost budget for 201X. 4. Assume the estimated finished goods inventory on January 1, 201X was $54,000. Desired finished goods inventory for December 31, 201X is $50,000. Assume the estimated WIP inventory on January 1, 201X was $47,000 while the desired WIP inventory on December 31, 201X is $49,000. After careful consideration and calculation, Platinum Trophy determines the Factory Overhead budget for 201X is $126,000. Based on the Direct Materials purchases budget and the direct labor cost budgets from above, create a Cost of Goods Sold budget for Platinum Trophy. 5. Platinum Trophy collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If sales on account are budgeted to be $100,000 for March and $126,000 for April, what are the budgeted cash receipts from sales on account for April?
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