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Coronado Company is preparing its budgeted income statement for 2022. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 920,000 units. Quarterly sales are 21%, 23 %, 23%, and 33%, respectively. The unit selling price is expected to be $38 for the first three quarters and $46 beginning in the fourth quarter. Sales in the first quarter of 2023 are expected to be 15% higher than the budgeted sales for the first quarter of 2022. Production Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $12 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2023 are 414,000 pounds. Coronado budgets 0.2 hours of direct labor per unit, labor costs at $12 per hour, and manufacturing overhead at $17 per direct labor hour. Its budgeted selling and administrative expenses for 2022 are $5,520,000. (a) Calculate the budgeted total unit cost. (Round answer to 2 decimal places, e.g. 12.25.) Total unit cost

Coronado Company is preparing its budgeted income statement for 2022. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 920,000 units. Quarterly sales are 21%, 23 %, 23%, and 33%, respectively. The unit selling price is expected to be $38 for the first three quarters and $46 beginning in the fourth quarter. Sales in the first quarter of 2023 are expected to be 15% higher than the budgeted sales for the first quarter of 2022. Production Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $12 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2023 are 414,000 pounds. Coronado budgets 0.2 hours of direct labor per unit, labor costs at $12 per hour, and manufacturing overhead at $17 per direct labor hour. Its budgeted selling and administrative expenses for 2022 are $5,520,000. (a) Calculate the budgeted total unit cost. (Round answer to 2 decimal places, e.g. 12.25.) Total unit cost

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 1E: The sales department of Macro Manufacturing Co. has forecast sales for its single product to be...
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Coronado Company is preparing its budgeted income statement for 2022. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 920,000 units. Quarterly sales are 21%, 23%, 23%, and 33%, respectively. The unit selling price is expected to be $38 for the first three quarters and $46 beginning in the fourth quarter. Sales in the first quarter of 2023 are expected to be 15% higher than the budgeted sales for the first quarter of 2022. Production Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $12 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2023 are 414,000 pounds. Coronado budgets 0.2 hours of direct labor per unit, labor costs at $12 per hour, and manufacturing overhead at $17 per direct labor hour. Its budgeted selling and administrative expenses for 2022 are $5,520,000. (a) Calculate the budgeted total unit cost. (Round answer to 2 decimal places, e.g. 12.25.) Total unit cost $ eTextbook and Medial Save for Later Attempts: 0 of 3 used Submit Answer
Transcribed Image Text:Coronado Company is preparing its budgeted income statement for 2022. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 920,000 units. Quarterly sales are 21%, 23%, 23%, and 33%, respectively. The unit selling price is expected to be $38 for the first three quarters and $46 beginning in the fourth quarter. Sales in the first quarter of 2023 are expected to be 15% higher than the budgeted sales for the first quarter of 2022. Production Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $12 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2023 are 414,000 pounds. Coronado budgets 0.2 hours of direct labor per unit, labor costs at $12 per hour, and manufacturing overhead at $17 per direct labor hour. Its budgeted selling and administrative expenses for 2022 are $5,520,000. (a) Calculate the budgeted total unit cost. (Round answer to 2 decimal places, e.g. 12.25.) Total unit cost $ eTextbook and Medial Save for Later Attempts: 0 of 3 used Submit Answer
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