Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner’s master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer’s share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company’s union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 25 percent of the following month’s projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 37,000 34,600 39,600 40,400 Sales price per unit $80 $80 $76 $76 Direct labor hours per unit 2.70 2.70 2.40 2.40 Direct labor hourly rate $17 $17 $18 $18 Direct materials cost per unit $9 $9 $9 $9 Required: Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit. 1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year. Question Content Area a. Production budget in units: Greiner CompanyProduction Budget (units)For the First Quarter of the Coming Year January February March Total Unit sales fill in the blank 8753eeff4fac036_1 fill in the blank 8753eeff4fac036_2 fill in the blank 8753eeff4fac036_3 fill in the blank 8753eeff4fac036_4 Desired ending inventory fill in the blank 8753eeff4fac036_5 fill in the blank 8753eeff4fac036_6 fill in the blank 8753eeff4fac036_7 fill in the blank 8753eeff4fac036_8 Total units required fill in the blank 8753eeff4fac036_9 fill in the blank 8753eeff4fac036_10 fill in the blank 8753eeff4fac036_11 fill in the blank 8753eeff4fac036_12 Less: Beginning inventory fill in the blank 8753eeff4fac036_13 fill in the blank 8753eeff4fac036_14 fill in the blank 8753eeff4fac036_15 fill in the blank 8753eeff4fac036_16 Units produced fill in the blank 8753eeff4fac036_17 fill in the blank 8753eeff4fac036_18 fill in the blank 8753eeff4fac036_19 fill in the blank 8753eeff4fac036_20 Question Content Area b. Direct labor budget in hours: Round your answers to two decimal places, if required. Greiner CompanyDirect Labor Budget (hours)For the First Quarter of the Coming Year January February March Total Units produced fill in the blank 29f874018032fef_1 fill in the blank 29f874018032fef_2 fill in the blank 29f874018032fef_3 fill in the blank 29f874018032fef_4 Direct labor hours per unit fill in the blank 29f874018032fef_5 fill in the blank 29f874018032fef_6 fill in the blank 29f874018032fef_7 Total labor budget (hours) fill in the blank 29f874018032fef_8 fill in the blank 29f874018032fef_9 fill in the blank 29f874018032fef_10 fill in the blank 29f874018032fef_11 Question Content Area c. Direct materials cost budget: Greiner CompanyDirect Materials Cost BudgetFor the First Quarter of the Coming Year January February March Total Units produced fill in the blank 99a9c7023fcffd0_1 fill in the blank 99a9c7023fcffd0_2 fill in the blank 99a9c7023fcffd0_3 fill in the blank 99a9c7023fcffd0_4 Cost per unit $fill in the blank 99a9c7023fcffd0_5 $fill in the blank 99a9c7023fcffd0_6 $fill in the blank 99a9c7023fcffd0_7 $fill in the blank 99a9c7023fcffd0_8 Total direct materials $fill in the blank 99a9c7023fcffd0_9 $fill in the blank 99a9c7023fcffd0_10 $fill in the blank 99a9c7023fcffd0_11 $fill in the blank 99a9c7023fcffd0_12
Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner’s master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer’s share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company’s union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 25 percent of the following month’s projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 37,000 34,600 39,600 40,400 Sales price per unit $80 $80 $76 $76 Direct labor hours per unit 2.70 2.70 2.40 2.40 Direct labor hourly rate $17 $17 $18 $18 Direct materials cost per unit $9 $9 $9 $9 Required: Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit. 1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year. Question Content Area a. Production budget in units: Greiner CompanyProduction Budget (units)For the First Quarter of the Coming Year January February March Total Unit sales fill in the blank 8753eeff4fac036_1 fill in the blank 8753eeff4fac036_2 fill in the blank 8753eeff4fac036_3 fill in the blank 8753eeff4fac036_4 Desired ending inventory fill in the blank 8753eeff4fac036_5 fill in the blank 8753eeff4fac036_6 fill in the blank 8753eeff4fac036_7 fill in the blank 8753eeff4fac036_8 Total units required fill in the blank 8753eeff4fac036_9 fill in the blank 8753eeff4fac036_10 fill in the blank 8753eeff4fac036_11 fill in the blank 8753eeff4fac036_12 Less: Beginning inventory fill in the blank 8753eeff4fac036_13 fill in the blank 8753eeff4fac036_14 fill in the blank 8753eeff4fac036_15 fill in the blank 8753eeff4fac036_16 Units produced fill in the blank 8753eeff4fac036_17 fill in the blank 8753eeff4fac036_18 fill in the blank 8753eeff4fac036_19 fill in the blank 8753eeff4fac036_20 Question Content Area b. Direct labor budget in hours: Round your answers to two decimal places, if required. Greiner CompanyDirect Labor Budget (hours)For the First Quarter of the Coming Year January February March Total Units produced fill in the blank 29f874018032fef_1 fill in the blank 29f874018032fef_2 fill in the blank 29f874018032fef_3 fill in the blank 29f874018032fef_4 Direct labor hours per unit fill in the blank 29f874018032fef_5 fill in the blank 29f874018032fef_6 fill in the blank 29f874018032fef_7 Total labor budget (hours) fill in the blank 29f874018032fef_8 fill in the blank 29f874018032fef_9 fill in the blank 29f874018032fef_10 fill in the blank 29f874018032fef_11 Question Content Area c. Direct materials cost budget: Greiner CompanyDirect Materials Cost BudgetFor the First Quarter of the Coming Year January February March Total Units produced fill in the blank 99a9c7023fcffd0_1 fill in the blank 99a9c7023fcffd0_2 fill in the blank 99a9c7023fcffd0_3 fill in the blank 99a9c7023fcffd0_4 Cost per unit $fill in the blank 99a9c7023fcffd0_5 $fill in the blank 99a9c7023fcffd0_6 $fill in the blank 99a9c7023fcffd0_7 $fill in the blank 99a9c7023fcffd0_8 Total direct materials $fill in the blank 99a9c7023fcffd0_9 $fill in the blank 99a9c7023fcffd0_10 $fill in the blank 99a9c7023fcffd0_11 $fill in the blank 99a9c7023fcffd0_12
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
Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner’s
| January | February | March | April | |
| Estimated unit sales | 37,000 | 34,600 | 39,600 | 40,400 |
| Sales price per unit | $80 | $80 | $76 | $76 |
| Direct labor hours per unit | 2.70 | 2.70 | 2.40 | 2.40 |
| Direct labor hourly rate | $17 | $17 | $18 | $18 |
| Direct materials cost per unit | $9 | $9 | $9 | $9 |
Required:
Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit.
1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year.
Question Content Area
a. Production budget in units:
| January | February | March | Total | |
|---|---|---|---|---|
| Unit sales | fill in the blank 8753eeff4fac036_1 | fill in the blank 8753eeff4fac036_2 | fill in the blank 8753eeff4fac036_3 | fill in the blank 8753eeff4fac036_4 |
| Desired ending inventory | fill in the blank 8753eeff4fac036_5 | fill in the blank 8753eeff4fac036_6 | fill in the blank 8753eeff4fac036_7 | fill in the blank 8753eeff4fac036_8 |
| Total units required | fill in the blank 8753eeff4fac036_9 | fill in the blank 8753eeff4fac036_10 | fill in the blank 8753eeff4fac036_11 | fill in the blank 8753eeff4fac036_12 |
| Less: Beginning inventory | fill in the blank 8753eeff4fac036_13 | fill in the blank 8753eeff4fac036_14 | fill in the blank 8753eeff4fac036_15 | fill in the blank 8753eeff4fac036_16 |
| Units produced | fill in the blank 8753eeff4fac036_17 | fill in the blank 8753eeff4fac036_18 | fill in the blank 8753eeff4fac036_19 | fill in the blank 8753eeff4fac036_20 |
Question Content Area
b. Direct labor budget in hours: Round your answers to two decimal places, if required.
| January | February | March | Total | |
|---|---|---|---|---|
| Units produced | fill in the blank 29f874018032fef_1 | fill in the blank 29f874018032fef_2 | fill in the blank 29f874018032fef_3 | fill in the blank 29f874018032fef_4 |
| Direct labor hours per unit | fill in the blank 29f874018032fef_5 | fill in the blank 29f874018032fef_6 | fill in the blank 29f874018032fef_7 | |
| Total labor budget (hours) | fill in the blank 29f874018032fef_8 | fill in the blank 29f874018032fef_9 | fill in the blank 29f874018032fef_10 | fill in the blank 29f874018032fef_11 |
Question Content Area
c. Direct materials cost budget:
| January | February | March | Total | |
|---|---|---|---|---|
| Units produced | fill in the blank 99a9c7023fcffd0_1 | fill in the blank 99a9c7023fcffd0_2 | fill in the blank 99a9c7023fcffd0_3 | fill in the blank 99a9c7023fcffd0_4 |
| Cost per unit | $fill in the blank 99a9c7023fcffd0_5 | $fill in the blank 99a9c7023fcffd0_6 | $fill in the blank 99a9c7023fcffd0_7 | $fill in the blank 99a9c7023fcffd0_8 |
| Total direct materials | $fill in the blank 99a9c7023fcffd0_9 | $fill in the blank 99a9c7023fcffd0_10 | $fill in the blank 99a9c7023fcffd0_11 | $fill in the blank 99a9c7023fcffd0_12 |
Question Content Area
d. Sales budget: Round unit selling price amounts to the nearest cent and use the same for subsequent requirements.
| January | February | March | Total | |
|---|---|---|---|---|
| Unit sales | fill in the blank d9e1730b7039fd4_1 | fill in the blank d9e1730b7039fd4_2 | fill in the blank d9e1730b7039fd4_3 | fill in the blank d9e1730b7039fd4_4 |
| Unit selling price | $fill in the blank d9e1730b7039fd4_5 | $fill in the blank d9e1730b7039fd4_6 | $fill in the blank d9e1730b7039fd4_7 | $fill in the blank d9e1730b7039fd4_8 |
| Total sales revenue | $fill in the blank d9e1730b7039fd4_9 | $fill in the blank d9e1730b7039fd4_10 | $fill in the blank d9e1730b7039fd4_11 | $fill in the blank d9e1730b7039fd4_12 |
Question Content Area
2. Calculate the total budgeted contribution margin for Greiner Company by month and in total for the first quarter of the coming year. (CMA adapted)
| January | February | March | Total | |
|---|---|---|---|---|
| Sales revenue | $fill in the blank 20fa34f67fe7056_2 | $fill in the blank 20fa34f67fe7056_3 | $fill in the blank 20fa34f67fe7056_4 | |
| Direct labor cost | fill in the blank 20fa34f67fe7056_5 | fill in the blank 20fa34f67fe7056_6 | fill in the blank 20fa34f67fe7056_7 | fill in the blank 20fa34f67fe7056_8 |
| Materials cost | fill in the blank 20fa34f67fe7056_9 | fill in the blank 20fa34f67fe7056_10 | fill in the blank 20fa34f67fe7056_11 | fill in the blank 20fa34f67fe7056_12 |
| Contribution margin |
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