EFE company manufactures and sells boats. The company's management accountant gathered the following data to prepare budgets for 2012; Direct Materials Requirements Material A 12 metres per boat Material B 14 square meter per boat Inventory data of Direct Materials are: Beginning Inventory Material A 5.000 meters Material B 2.400 square meters Inventory data of Finished Goods are: Beginning Inventory Target Ending Inventory Boats 1.000 units 3.000 units Moreover, unit purchase price of material A was S60 and unit purchase price of material B was $10. For the coming year 2021 it is expected that unit purchase price of material A will be S64 and unit purchase price of material B will not change. The company uses FIFO inventory method. Labor hours required to produce 1 boat is 3 hours and the company plans to pay $12 per hour. Company budgeted manufacturing overhead rate of S6 per labor hour. Finally, the company expects to sell 4000 boats in 2021 at an average unit selling price of $6000. a) Please prepare "revenues budget for the year 2021. b) Please prepare "production budget" for the year 2021. C) Please prepare "direct material usage budget in terms of quantity and monetary amount for the year 2021. d) Please prepare direct labor budget for the year 2021. e) Please prepare manufacturing overhead budget for the year 2021. ) Please determine COGM per unit for 2021, prepare COGS budget and compute the gross profit. 9) How is budgeting for a multinational corporation can be different than budgeting for a corporation that is strictly domestic? What key considerations should managers evaluate in the budget preparation process?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
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