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Determine the cost per kit to manufacture the model airplane kits. Prepare a cost of goods sold budget for the year.

Determine the cost per kit to manufacture the model airplane kits. Prepare a cost of goods sold budget for the year.

FINANCIAL ACCOUNTING
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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Budgeted kits to be produced Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour Budgeted direct labor cost Budgeted kits to be produced VOH cost per kit Budgeted VOH Budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate $ $ GA $ $ 650 0.10 $ 65.00 10 $ 650 $ Grady, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Quarter 650 0.20 $ 130.00 $ 165.00 295.00 $ 500 0.10 65.00 50.00 10 $ 500 $ Second Quarter 500 0.20 $ 100.00 $ 165.00 265.00 $ 50.00 450 0.10 45.00 10 $ 450 $ Third Quarter 450 0.20 S 90.00 $ 165.00 255.00 $ 45.00 600 0.10 60.00 10 $ 600 $ Fourth Quarter 600 0.20 $ 120.00 $ 165.00 285.00 $ 60.00 $ $ 2,200 0.10 220.00 10 2,200 Total 2,200 0.20 440.00 660.00 1,100.00 220.00 1,100.00- 5.00
Transcribed Image Text:Budgeted kits to be produced Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour Budgeted direct labor cost Budgeted kits to be produced VOH cost per kit Budgeted VOH Budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate $ $ GA $ $ 650 0.10 $ 65.00 10 $ 650 $ Grady, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Quarter 650 0.20 $ 130.00 $ 165.00 295.00 $ 500 0.10 65.00 50.00 10 $ 500 $ Second Quarter 500 0.20 $ 100.00 $ 165.00 265.00 $ 50.00 450 0.10 45.00 10 $ 450 $ Third Quarter 450 0.20 S 90.00 $ 165.00 255.00 $ 45.00 600 0.10 60.00 10 $ 600 $ Fourth Quarter 600 0.20 $ 120.00 $ 165.00 285.00 $ 60.00 $ $ 2,200 0.10 220.00 10 2,200 Total 2,200 0.20 440.00 660.00 1,100.00 220.00 1,100.00- 5.00
Grady, Inc. manufactures model airplane kits. Direct materials are four ounces of plastic per kit and the plastic costs $1 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Each kit requires 0.10 hours of direct labor at an average cost of $10 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets: (Click the icon to view the budgets.) Grady projects sales of 100, 150, 100, and 200 kits for the next four quarters. Grady has no kits in beginning inventory. Determine the cost per kit to manufacture the model airplane kits. Prepare a cost of goods sold budget for the year. Round amounts to two decimal places. X Determine the cost per kit to manufacture the model airplane kits. (Round your answers to two decimal places, SX.XX.) $ 1.00 4.00 0.50 5.50 Direct labor cost per kit Direct materials cost per kit Manufacturing overhead cost per kit $ Total projected manufacturing cost per kit Prepare a cost of goods sold budget for the year. (Complete all input fields. Enter "0" for zero balances.) Grady, Inc. Cost of Goods Sold Budget For the Year Ended December 31 First Quarter Beginning inventory. Kits produced and sold Total budgeted cost of goods sold 0 Second Quarter Third Quarter Fourth Quarter Total 0 Reference Grady, Inc. Direct Materials Budget For the Year Ended December 31 Second Third Quarter Quarter Budgeted kits to be produced Direct materials (ounces) per kit Direct materials needed for production Plus: Desired direct materials in ending inventory Total direct materials needed Less: Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials purchases First Quarter 650 4 $ $ 2,600 200 2,800 500 4 2,000 180 2,180 850 4 200 1,950 1 S 1,950 $ Grady, Inc. Direct Labor Budget For the Year Ended December 31 1,980 1 S 1,980 $ 450 4 1,800 240 2,040 180 1,860 1 S 1,860 $ Fourth Quarter 600 4 2,400 200 2,600 240 2,360 1 $ 2,360 $ Total 2,200 4 8,800 200 9,000 850 8,150 1 8,150
Transcribed Image Text:Grady, Inc. manufactures model airplane kits. Direct materials are four ounces of plastic per kit and the plastic costs $1 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Each kit requires 0.10 hours of direct labor at an average cost of $10 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets: (Click the icon to view the budgets.) Grady projects sales of 100, 150, 100, and 200 kits for the next four quarters. Grady has no kits in beginning inventory. Determine the cost per kit to manufacture the model airplane kits. Prepare a cost of goods sold budget for the year. Round amounts to two decimal places. X Determine the cost per kit to manufacture the model airplane kits. (Round your answers to two decimal places, SX.XX.) $ 1.00 4.00 0.50 5.50 Direct labor cost per kit Direct materials cost per kit Manufacturing overhead cost per kit $ Total projected manufacturing cost per kit Prepare a cost of goods sold budget for the year. (Complete all input fields. Enter "0" for zero balances.) Grady, Inc. Cost of Goods Sold Budget For the Year Ended December 31 First Quarter Beginning inventory. Kits produced and sold Total budgeted cost of goods sold 0 Second Quarter Third Quarter Fourth Quarter Total 0 Reference Grady, Inc. Direct Materials Budget For the Year Ended December 31 Second Third Quarter Quarter Budgeted kits to be produced Direct materials (ounces) per kit Direct materials needed for production Plus: Desired direct materials in ending inventory Total direct materials needed Less: Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials purchases First Quarter 650 4 $ $ 2,600 200 2,800 500 4 2,000 180 2,180 850 4 200 1,950 1 S 1,950 $ Grady, Inc. Direct Labor Budget For the Year Ended December 31 1,980 1 S 1,980 $ 450 4 1,800 240 2,040 180 1,860 1 S 1,860 $ Fourth Quarter 600 4 2,400 200 2,600 240 2,360 1 $ 2,360 $ Total 2,200 4 8,800 200 9,000 850 8,150 1 8,150
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