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Double Bubble Inc company is engaged into production of metal jewelry - «Gold» and «Silver». The data below is for running of business: 1. Management had decided with the sales for the upcoming period: Gold-2500 units per 920 $ and Silver 500 units per 980 S. 2. Expected inventory stock for the end of the Gold-20% of the sales volume; Silver-10% of the sales volume. 3. Expected cost for materials: AA-35 $ per kg; BB-25 $ per kg; CC-10 S per kg. 4. Consumption of materials per unit: Material Measure Gold kg 2 kg 3 kg I 1,5 5. Management considers the required stock of materials for the end of the period. AA - 12% of AA BB CC Silver I 4

Double Bubble Inc company is engaged into production of metal jewelry - «Gold» and «Silver». The data below is for running of business: 1. Management had decided with the sales for the upcoming period: Gold-2500 units per 920 $ and Silver 500 units per 980 S. 2. Expected inventory stock for the end of the Gold-20% of the sales volume; Silver-10% of the sales volume. 3. Expected cost for materials: AA-35 $ per kg; BB-25 $ per kg; CC-10 S per kg. 4. Consumption of materials per unit: Material Measure Gold kg 2 kg 3 kg I 1,5 5. Management considers the required stock of materials for the end of the period. AA - 12% of AA BB CC Silver I 4

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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You are required to prepare operational budget for the upcoming year including following:

 

1)   Sales budget;

 

2)   Production budget and Readymade production budget;

 

3)   Direct materials budget;

 

4)   Direct labor budget;

 

5)   Purchase’s budget;

 

6)   Overheads budget;

 

7)   General production costs distribution;

 

8)   Cost of sales budget;

 

9)   Selling expenses budget;

 

10) Ending materials and ending Readymade production;

 

11) Profit and loss(Income statement).

Double Bubble Inc company is engaged into production of metal jewelry - «Gold» and «Silver». The data below is for running of business: 1. Management had decided with the sales for the upcoming period: Gold-2500 units per 920 $ and Silver 500 units per 980 S. 2. Expected inventory stock for the end of the: Gold-20% of the sales volume; Silver -10% of the sales volume. 3. Expected cost for materials: AA-35 $ per kg; BB-25 $ per kg; CC-10 S per kg. 4. Consumption of materials per unit: Material Gold 2 3 kg I 1,5 5. Management considers the required stock of materials for the end of the period. AA - 12% of production need; BB-15% of production need; CC-10% of production need. 6. Average cost per 1 hour of preparatory operations-20 $, 1 hour of main operations - 30 p$; 1 hour of completion operations - 10 $. 7. Required labor per unit: Operations 1) 2) AA BB CC Preparatory Main Measure Hours Hours Completion Hours 8. The company plans the following expenses: 1)general production, 2)administrative and selling: №₂ 1 2 3 7 8 9 4 5 Equipment depreciation. 6 Workshop depreciation No Tools and applications Salaries of repairmen and fitters 10 Total 1 2 Electricity of equipment Materials for repair purposes 6 Title Admin and managers salary Employee's salary 3 Maintenance of admin office 4 Depreciation of admin office 5 Other admin expenses Title Intra-plant movement of goods Salary of foremen Workshop lighting and electricity Total Measure kg kg Indicators Beginning stock, in units Cost in S AA 528 Gold 1 Materials BB 840 Indicators To the start of the period, kg. Cost, $ 18 480 21 000 12. Availability of readymade production stock for the start of the period: Unit title 6 2 Gold 400 284 800 S Silver I 4 Silver 1 7 2 84 000 145 000 45 000 9 000 48 000 115 000 15 050 95 000 60 000 S 9. The ready-made production estimated on the base of average weighted method. 10. Company calculates the cost of production on the base of direct-costing. General production costs distributed based on proportion to direct labor costs (83%:17%). Admin and selling expenses are written to profit and loss. 11. Availability of materials for the start of the period: 616 050 74 000 41 000 46 000 135 000 80 400 376 400 CC 450 4 500 Silver 100 75 050
Transcribed Image Text:Double Bubble Inc company is engaged into production of metal jewelry - «Gold» and «Silver». The data below is for running of business: 1. Management had decided with the sales for the upcoming period: Gold-2500 units per 920 $ and Silver 500 units per 980 S. 2. Expected inventory stock for the end of the: Gold-20% of the sales volume; Silver -10% of the sales volume. 3. Expected cost for materials: AA-35 $ per kg; BB-25 $ per kg; CC-10 S per kg. 4. Consumption of materials per unit: Material Gold 2 3 kg I 1,5 5. Management considers the required stock of materials for the end of the period. AA - 12% of production need; BB-15% of production need; CC-10% of production need. 6. Average cost per 1 hour of preparatory operations-20 $, 1 hour of main operations - 30 p$; 1 hour of completion operations - 10 $. 7. Required labor per unit: Operations 1) 2) AA BB CC Preparatory Main Measure Hours Hours Completion Hours 8. The company plans the following expenses: 1)general production, 2)administrative and selling: №₂ 1 2 3 7 8 9 4 5 Equipment depreciation. 6 Workshop depreciation No Tools and applications Salaries of repairmen and fitters 10 Total 1 2 Electricity of equipment Materials for repair purposes 6 Title Admin and managers salary Employee's salary 3 Maintenance of admin office 4 Depreciation of admin office 5 Other admin expenses Title Intra-plant movement of goods Salary of foremen Workshop lighting and electricity Total Measure kg kg Indicators Beginning stock, in units Cost in S AA 528 Gold 1 Materials BB 840 Indicators To the start of the period, kg. Cost, $ 18 480 21 000 12. Availability of readymade production stock for the start of the period: Unit title 6 2 Gold 400 284 800 S Silver I 4 Silver 1 7 2 84 000 145 000 45 000 9 000 48 000 115 000 15 050 95 000 60 000 S 9. The ready-made production estimated on the base of average weighted method. 10. Company calculates the cost of production on the base of direct-costing. General production costs distributed based on proportion to direct labor costs (83%:17%). Admin and selling expenses are written to profit and loss. 11. Availability of materials for the start of the period: 616 050 74 000 41 000 46 000 135 000 80 400 376 400 CC 450 4 500 Silver 100 75 050
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