Fill in the missing information from the following schedules: Sales Budget For the Year Ending Dec. 31, 2018 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Expected sales (units) 7,600 8,300 8,700 9,100 fill in the blank 1 Sales price per unit $45 $50 $50 $56 Total sales revenue $342,000 $415,000 $435,000 $fill in the blank 2 $fill in the blank 3
Fill in the missing information from the following schedules: Sales Budget For the Year Ending Dec. 31, 2018 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Expected sales (units) 7,600 8,300 8,700 9,100 fill in the blank 1 Sales price per unit $45 $50 $50 $56 Total sales revenue $342,000 $415,000 $435,000 $fill in the blank 2 $fill in the blank 3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Fill in the missing information from the following schedules:
| Sales Budget | |||||
| For the Year Ending Dec. 31, 2018 | |||||
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Total | |
| Expected sales (units) | 7,600 | 8,300 | 8,700 | 9,100 | fill in the blank 1 |
| Sales price per unit | $45 | $50 | $50 | $56 | |
| Total sales revenue | $342,000 | $415,000 | $435,000 | $fill in the blank 2 | $fill in the blank 3 |
| Production Budget | |||||
| For the Year Ending Dec. 31, 2018 | |||||
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Q1, Year 2 | |
| Expected sales | 7,600 | 8,300 | 8,700 | 9,100 | 7,900 |
| Desired ending inventory | 1,660 | 1,740 | 1,820 | fill in the blank 4 | 900 |
| Total required units | 9,260 | 10,040 | 10,520 | 10,680 | 8,800 |
| Less: Beginning inventory | 1,520 | 1,660 | 1,740 | 1,820 | 1,580 |
| Required production | 7,740 | 8,380 | 8,780 | fill in the blank 5 | 7,220 |
| Total | fill in the blank 6 |
| Direct Materials Budget | |||||
| For the Year Ending Dec. 31, 2018 | |||||
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Total | |
| Units to be produced | 7,740 | 8,380 | 8,780 | 8,860 | 33,760 |
| Direct material per unit | 2 | 2 | 2 | 2 | 2 |
| Total pounds needed for production | 15,480 | 16,760 | 17,560 | 17,720 | 67,520 |
| Add: Desired ending inventory | 4,190 | 4,390 | 4,430 | 3,610 | 3,610 |
| Total material required | 19,670 | 21,150 | 21,990 | 21,330 | 71,130 |
| Less: Beginning inventory | 0 | 4,190 | 4,390 | 4,430 | - |
| Pounds of direct material purchase requirements | 19,670 | 16,960 | 17,600 | 16,900 | 71,130 |
| Cost per pound | $1.50 | $1.50 | $1.50 | $1.50 | $1.50 |
| Total cost of direct material purchase | $29,505 | $25,440 | $26,400 | $25,350 | $106,695 |
| Total | $fill in the blank 7 | $106,695 |
| Direct Labor Budget | |||||
| For the Year Ending Dec. 31, 2018 | |||||
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Total | |
| Units to be produced | 7,740 | 8,380 | 8,780 | fill in the blank 8 | fill in the blank 9 |
| Direct labor hours per unit | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 |
| Total required direct labor hours | 5,805 | 6,285 | 6,585 | 6,645 | fill in the blank 10 |
| Labor cost per hour | $25 | $25 | $25 | $25 | $25 |
| Total direct labor cost | $145,125 | $157,125 | $164,625 | $fill in the blank 11 | $633,000 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education