Answered: Harbour Inc. budgeted production of…

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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Harbour Inc. budgeted production of 258,000 personal journals in 20Y6. Paper is required to produce a journal. Assume 5 square yards of paper are required for each journal. The estimated January 1, 20Y6, paper inventory is 25,100 square yards. The desired December 31, 20Y6, paper inventory is 17,000 square yards. Paper costs $0.60 per square yard.

Each journal requires assembly. Assume that 6 minutes are required to assemble each journal. Assembly labor costs $16.50 per hour.

Prepare a cost of goods sold budget for Harbour Inc. using the information above. Assume the estimated inventories on January 1, 20Y6, for finished goods and work in process were $41,100 and $35,700, respectively. Also assume the desired inventories on December 31, 20Y6, for finished goods and work in process were $49,800 and $50,900, respectively. Factory overhead was budgeted at $197,200. Round your interim calculations to nearest cent, if required.

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Week 6 - Problem Assignment
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Cost of Goods Sold Budget
1. PE.22.01A
Harbour Inc. budgeted production of 258,000 personal journals in 20Y6. Paper is required to produce a journal. Assume 5 square yards of
2. PE.22.02A
paper are required for each journal. The estimated January 1, 20Y6, paper inventory is 25,100 square yards. The desired December 31,
20Y6, paper inventory is 17,000 square yards. Paper costs $0.60 per square yard.
3. PE.22.03A
Each journal requires assembly. Assume that 6 minutes are required to assemble each journal. Assembly labor costs $16.50 per hour.
4. PE.22.04A
Prepare a cost of goods sold budget for Harbour Inc. using the information above. Assume the estimated inventories on January 1, 20Y6,
for finished goods and work in process were $41,100 and $35,700, respectively. Also assume the desired inventories on December 31,
5. РЕ.22.05А
20Y6, for finished goods and work in process were $49,800 and $50,900, respectively. Factory overhead was budgeted at $197,200.
Round your interim calculations to nearest cent, if required.
6. PE.22.06A
Harbour Inc.
7. EX.22.01.ALGO
Cost of Goods Sold Budget
For the Year Ending December 31, 20Y6
8. EX.22.19.ALGO
Finished goods inventory, January 1, 20Y6
Work in process inventory, January 1, 20Y6 V
Direct materials:
Direct materials inventory, January 1, 20Y6
15,060
Direct materials purchases v
769,140
Cost of direct materials available for use v
Less direct materials inventory, December 31, 20Y6 V
Cost of direct materials placed in production
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Week 6 - Problem Assignment
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1. PE.22.01A
Less direct materials inventory, December 31, 20Y6 V
Cost of direct materials placed in production
2. PE.22.02A
Direct labor v
3. PE.22.03A
Factory overhead v
4. PE.22.04A
Total manufacturing costs V
Total work in process during period
24
5. РЕ.22.05А
Less work in process inventory, December 31, 20Y6 V
6. PE.22.06A
Cost of goods manufactured v
7. EX.22.01.ALGO
Cost of finished goods available for sale v
Less finished goods inventory, December 31, 20Y6
8. EX.22.19.ALGO
Cost of goods sold v
2$
Feedback
V Check My Work
The cost of goods sold budget integrates the direct materials purchases budget, the direct labor cost budget, and the factory
overhead cost budget. In addition, the estimated and desired inventories for direct materials, work in process, and finished goods
must also be integrated.
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DELL
2/9/2021
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因
V

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