Ceder Company has compiled the following data for the upcoming year:• Sales are expected to be 16,500 units at $50 each.• Each unit requires 4 pounds of direct materials at $3.00 per pound.• Each unit requires 1.8 hours of direct labor at $13 per hour.••••Manufacturing overhead is $4.00 per unit.Beginning direct materials inventory is $4,500.Ending direct materials inventory is $5,600.Selling and administrative costs totaled $137,370.Required:1. Determine Ceder's budgeted cost of goods sold.2. Complete Ceder's budgeted income statement.Complete this question by entering your answers in the tabs below.Required 1 Required 2Complete Ceder's budgeted income statement.Note: Do not round the intermediate values.CEDER COMPANYBudgeted Income StatementBudgeted Gross MarginBudgeted Net Operating Income

1. Budgeted Cost of goods sold = $650,100 2. Budgeted Income Statement Explanation: Step 1:…

Answered: Ceder Company has compiled the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Campbell Manufacturing Company produced 1,400 units of inventory in January Year 2. It expects to produce an additional 9,000 units during the remaining 11 months of the year. In other words, total production for Year 2 is estimated to be 10,400 units. Direct materials and direct labor costs are $74 and $71 per unit, respectively. Campbell expects to incur the following manufacturing overhead costs during the Year 2 accounting period. Production supplies Supervisor salary Depreciation on equipment Utilities Rental fee on manufacturing facilities Required a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. b. Determine the cost of the 1,400 units of product made in January. Complete this question by entering your answers in the tabs below. Required A Required B $6,500 186,000 126,000 17,000 223,500 Determine the cost of the 1,400 units of product made in January. Allocated Cost Indirect…
Windmire Company manufactures and sells to local wholesalers approximately 300,000 units per month at a sales price of $4 per unit. Monthly costs for the production and sale of this quantity follow. Direct materials $384,000 Direct labor 96,000 Overhead . 288,000 Selling expenses 120,000 Administrative expenses . 80,000 Total costs and expenses $968,000 A new out-of-state distributor has offered to buy 50,000 units next month for $3.44 each. These units would be marketed in other states and would not affect Windmire’s sales through its normal channels. A study of the costs of this new business reveals the following: ∙ Direct materials costs are 100% variable. ∙ Per unit direct labor costs for the additional units would be 50% higher than normal because their production would require overtime pay at 1½ times their normal rate to meet the distributor’s deadline. ∙ Twenty-five percent of normal annual overhead costs are fixed at any production level from 250,000 to 400,000 units. The…
Meow Foods had 2,000 25-pound bags of cat food in beginning inventory. During 2020, the company manufactured 16,000 bags and sold 15,000 units. Assume the same unit costs in all years. Each bag of food is sold for $17. The company experienced the following costs: Direct materials $5.00 per unit Direct labor $2.10 per unit Variable manufacturing overhead $1.90 per unit Variable selling $1.00 per unit Fixed manufacturing overhead $48,000 Fixed selling $24,000 Fixed administrative $30,000 If the company uses variable costing, how much will be reported as inventory on the December 31, 2020, balance sheet? $27,000 $30,000 $28,500 $34,500
Soul Socket Inc. manufactures socket wrenches. . For next month, the vice president of production plans on producing 4,450 wrenches per day. The company can produce as many as 5,000 wrenches per day, but is more likely to produce 4,500 per day. . The demand for wrenches over the past three years averaged 4,250 wrenches per day. • Fixed manufacturing costs per month total $374,000. . The company works 22 days a month. • Fixed manufacturing overhead is charged on a per-wrench basis. a. What is the overhead rate per wrench based on Theoretical Capacity? [Select] b. What is the overhead rate per wrench based on Practical Capacity? [Select] c. What is the overhead rate per wrench based on Normal Utilization? [Select] d. What is the overhead rate per wrench based on Master Budget Utilization? [Select]
A manufacturer has a production facility that requires 19,111 units of component JY21 per year. Following a long-term contract, the manufacturer purchases component JY21 from a supplier with a lead time of 6 days. The unit purchase cost is $12.8 per unit. The cost to place and process an order from the supplier is $113 per order. The unit inventory carrying cost per year is 20 percent of the unit purchase cost. The manufacturer operates 250 days a year. Assume EOQ model is appropriate. What is the optimal total annual inventory and purchase cost for the manufacturer? Use at least 4 decimal places.
Ceder Company has compiled the following data for the upcoming year: Sales are expected to be 16,000 units at $52 each. Each unit requires 4 pounds of direct materials at $2.40 per pound. Each unit requires 2.1 hours of direct labor at $13 per hour. Manufacturing overhead is $4.90 per unit. Beginning direct materials inventory is $5,400. Ending direct materials inventory is $6,950. Selling and administrative costs totaled $138,720. Determine Ceder's budgeted cost of goods sold. Complete Ceder's budgeted income statement.
Scotch Brand Products produces packaging tape and has determined the following to be its standard cost of producing one case of budget packaging tape: Material (3.50 ounces at $1.30 per ounce) $4.55 Labor (0.30 hour at $12.00 per hour) 3.60 Overhead 2.40 Total $10.55 At the start of 2021, Scotch Brand planned to produce 80,000 cases of tape during the year. Overhead is allocated based on the number of cases of tape produced. Annual fixed overhead is budgeted at $64,000 and the variable overhead costs are budgeted at $1.60 per case. The following information summarizes the results for 2021: Actual production, 81,000 cases Purchased 275,000 ounces of material at a total cost of $343,750 Used 266,250 ounces of material in production Employees worked 22,000 hours, total labor cost $275,000 Actual overhead incurred,…
TRIUMPHANT Company manufactures wood chairs that sell for USD25 each. Each chair requires 4 linear feet of wood, which costs USD2.00 per foot. Each chair takes approximately 30 minutes to build, and the labor rate averages USD12.00 per hour. TRIUMPHANT has the following inventory policies: Ending finished goods inventory should be 40 percent of next month's sales. Ending direct materials inventory should be 30 percent of next month's production. Expected unit sales (chair) for the upcoming months follow: June 225 July 275 August 350 September 400 October 375 November 425 Variable manufacturing overhead is incurred at a rate of USDO,30 per unit produced. Annual fixed manufacturing overhead is estimated to be USD7,200 uction of 4,000 units for the year. Selling and administrative expenses are estimated at USD650 per month plus (USD600 per month) for expected USDO.60 per unit sold. Compute the budgeted direct materials purchases in dollars for the month of August.
Ajax Manufacturing produces a single product, which takes 8.0 pounds of direct material per unit produced. The company's policy is to maintain an end-of-quarter inventory of materials equal to 25 percent of the following quarter's material requirements for production. At the end of the 4th quarter, there were 72,000 pounds of material on hand. Assume it is currently the end of the first quarter of the new year. a. How many units of product were produced this quarter? b. Under the assumption that production will increase by 10% in the second quarter, what are the direct material requirements (in pounds) for planned production in the second quarter?

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