Consider the following information from the sales budget (Sales in units)MarJan8,500Feb8,000NovDec16,000Oct6,00018,0005,000SalesAdditional information:Sales price: $8.00; Credit sales = 80.0% of total salesEnding inventory requirements: Production budget 40.0%; Purchases budget%3D%3D10.0%Material required for each product 6.0 kilograms of recycled aluminum; the priceper kilogram of recycled aluminum = $0.80!!%3!Compute the cost of material purchased in November.$74,496$80,544$82,560$85,440

(1) The Ending Inventory Requirement out of the Production Budget is 40% of the next month sales…

Answered: Consider the following information from…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1EA: Blue Book printing is budgeting sales of 25,000 units and already has 5,000 in beginning inventory....

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Lens & Shades sells sunglasses for $37 each and is estimating sales of 21,000 units in January and 19,000 in February. Each lens consist of 2.00 mm of plastic costing $2.50 per mm, 1.7 oz of dye costing $2.80 per ounce. and 0.50 hours direct labor at a labor rate of $18 per unit. Desired inventory levels are: Prepare a sales budget, production budget, direct materials budget for silicon and solution, and a direct labor budget.
Samcor Limited manufactures tables. The following information was extracted from the budget June 2022: 1. 2. 3. 4. 5. Total production and sales Selling price per table Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units year R1 200 R288 R192 R96 R216 960 R144 000 5%
The following information was extracted from the budget for the month ended 31 August 2022: Sales 10 000 units at R200 per unit Direct materials cost per unit R50 Direct labour cost per unit R34 Variable manufacturing overhead costs per unit R24 Variable selling costs per unit R12 Fixed manufacturing overhead cost R230 000 Fixed selling and administrative costs R170 000 3.1 The total Marginal Income and Net Profit/Loss if all 10 000 units are sold. 3.2 Break even value by using the marginal income ratio 3.3 Margin of safety (in units) 3.4 The sales volume required to earn a net profit of R560 000 3.5 The total Marginal Income and Net Profit/Loss if all the manufacturing costs increase by 10%.
Muhanga Corporation sells three products: R, S, and T. Budgeted information for the upcoming accounting period follows. Product Sales Volume (Units) Selling Price Variable Cost R 17,600 $ 19 $ 13 S 13,600 15 6 T 54,800 16 10 What is the company's weighted-average unit contribution margin?
Butsoy Corporation manufactures two products – Ayko and Ayza. The budget committee gathered the following data for the budget year 200. Product Аyko Аyza Projected Sales and Inventory Requirements: Units 6,000 3,000 Selling Price P 90 100 Expected Inventory, 12/31/20B 750 400 Desired Inventory. 12/31/20C 1,100 500 Production Requirements: Cost P2 per kg. P4 per unit P3 per piece P 3 per hour P5 per direct labor hour Аyko 3 kgs 4 units Ayza Material: Beng 1 Beng 2 Beng 3 3 units 3 pcs 4 hours Direct labor 5 hours Factory overhead Materials Inventory Levels Beng 1 Beng 2 Beng 3 Expected Inventory, 12/31/20B 450 kgs. 1,200 units 1,750 pieces Desired Inventory, 12/31/20C 780 kgs. 900 units 1,400 pieces Required: Prepare the following budgets: 1. Sales budget 2. Production budget (in units) 3. Materials purchased budget in quantities and in pesos 4. Direct labor budget 5. Cost of goods sold budget (Assume a FIFO inventory system; unit costs of beginning inventory are P 40 for Ayko and P 65…
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Company A sells three products: B, C, and D. Budgeted information for the upcoming accounting period follows.Product Sales Volume (Units) Selling Price Variable CostB 16,000 ₱14 ₱9C 12,000 10 6D 52,000 11 8The company's weighted-average unit contribution margin is:
Q7 Duo, Incorporated, carries two products and has the following year-end income statement (000s omitted): Product AR-10 Product ZR-7 Budget Actual Budget Actual Units 2,600 3,600 7,200 6,700 Sales $ $ 13,000 $ 9,720 $ 14,400 $ 14,070 Variable costs 2,860 3,600 7,200 7,040 Fixed Costs 1,800 1,900 2,400 2,400 Total Costs $ 4,660 $ 5,500 $ 9,600 $ 9,440 Operating income $ 8,340 $ 4,220 $ 4,800 $ 4,630 The net effect of AR-10's sales volume variance on profit is: Multiple Choice $2,880 favorable. $1,950 favorable. $3,900 favorable. $3,150 favorable. $2,220 favorable.
The direct materials budget shows the following: Units to be produced 5000 Direct materials pounds required for production 19500 Direct materials pounds to be purchased 20400 What are the direct materials per unit? O 4.08 pounds O 0.18 pounds O 3.90 pounds O Cannot be determined from the data provided
Q.How does preparing the budget help Animal Gear’s management team better manage the company?
Given the information, prepare a sales budget in dollars, a raw materials inventory purchase budget in units and cost, and a production budget in units and cost. Sales forecast 10,000 units of ASD-34 at $159 each Beginning raw materials inventory 1,000 units of UIO-89 at a cost of $12.00 each Ending raw materials inventory 2,000 units of UIO-89 Beginning finished goods inventory 3,000 units of ASD-34 Ending finished goods inventory 4,000 units of ASD-34 Each unit of ASD-34 produced requires: 2 units of UIO-89 2 direct labor hours at $25.00 per hour Manufacturing overhead at 150 percent of direct labor cost
The Management Accountant of Kafululu Plc has prepared the following budget information for theyear ending 31st December 2022 for product A. Annual Fixed Costs K270,000.00 Variable costs per unit K90.00 Contribution to sales ratio(C/S) 75% Annual budget units 1,500 Required:a) Calculate the contribution per unit for Product A. b) Calculate the Unit Selling Price for Product A. c) Calculate the Break Even Point for Product A. d) Calculate the margin of safety in Units and in percentage terms. e) If the Selling Price per Unit is reduced by 10%, variable cost per Unit is increased to K100.00and Fixed costs remain unchanged, calculate:i. The new Breakeven Point. ii. The total units that should be sold in order to make a profit of K450,000 in 2020.(

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