Cari Furniture has the following information in respect of Coffee tables for 2021: Production specifications: Beginning Target Ending Inventory Inventory Direct Materials: Particle board 20,000 b.f. 18,000 b.f. Teak 25,000 b.f. 22,000 b.f. Finished goods Coffee tables 5,000 units 3,000 units Revenue expected for 2021 are: Selling price $392 per table Units sold 52,000 coffee tables Each coffee table requires 9.00 b.f. of particle board and 10.00 b.f. of Teak. Costs for 2020 and expected for 2021 include: 2020 2021 Particle board (per b.f.) $ 3.90 $ 4.00 Teak (per b.f.) $ 5.80 $ 6.00 Laminating labor (per hour) $24.00 $25.00 Machining labor (per hour) $29.00 $30.00 Required: Part 1 Prepare the following budgets for 2021: Direct Material Purchases Budget
Cari Furniture has the following information in respect of Coffee tables for 2021:
Production specifications:
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Beginning |
Target Ending |
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Inventory |
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Inventory |
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Direct Materials: |
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Particle board |
20,000 b.f. |
18,000 b.f. |
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Teak |
25,000 b.f. |
22,000 b.f. |
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Finished goods |
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Coffee tables |
5,000 units |
3,000 units |
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Revenue expected for 2021 are: |
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Selling price |
$392 per table |
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Units sold |
52,000 coffee tables |
Each coffee table requires 9.00 b.f. of particle board and 10.00 b.f. of Teak.
Costs for 2020 and expected for 2021
include:
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2020 |
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2021 |
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Particle board (per b.f.) |
$ 3.90 |
$ 4.00 |
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Teak (per b.f.) |
$ 5.80 |
$ 6.00 |
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Laminating labor (per hour) |
$24.00 |
$25.00 |
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Machining labor (per hour) |
$29.00 |
$30.00 |
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Required:
Part 1
Prepare the following budgets for 2021:
- Direct Material Purchases Budget
Step by step
Solved in 2 steps
