Standard Materials 6 unit $ 2 per unit Labor 1/4 hour 8 per hour Variable factory overhead 3/4 hour 4 per hour Fixed factory overhead 3/4 hour 12 per hour [ normal capacity 4, 000 hour ] Equivalent units produced materials 6,000 labor 5,800 factory overhead 5,500 Materials 33,000 units purchased on credit for $ 64,020 Direct labor $ 12,300 for 1,500 hour Factory overhead $ 67,250 actual cost Units completed 5,200 Units sold 5,500 at $ 40 each Provide the necessary journal entries for the above
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Standard
Materials 6 unit $ 2 per unit
Labor 1/4 hour 8 per hour
Variable factory
Fixed factory overhead 3/4 hour 12 per hour [ normal capacity 4, 000 hour ]
Equivalent units produced materials 6,000 labor 5,800 factory overhead 5,500
Materials 33,000 units purchased on credit for $ 64,020
Direct labor $ 12,300 for 1,500 hour
Factory overhead $ 67,250 actual cost
Units completed 5,200
Units sold 5,500 at $ 40 each
Provide the necessary
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