Lily Company estimates that unit sales will be 11,000 in quarter 1, 15,400 in quarter 2, 16,500 in quarter 3, and 19,800 in quarter 4. The unit selling price is $70. Management desires to have an ending finished goods inventory equal to 25% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first 6 months of 2027. Expected Unit Sales Add : Direct Materials Der Unit Direct Materials Purchases Less Desired Ending Finished Goods Inventorv Total Materials Required LILY COMPANY Production Budget For the Six Months Ending June 30, 2027 Quarter 1 2 14850 15675

Lily Company estimates that unit sales will be 11,000 in quarter 1, 15,400 in quarter 2, 16,500 in quarter 3, and 19,800 in quarter 4. The unit selling price is $70. Management desires to have an ending finished goods inventory equal to 25% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first 6 months of 2027. Expected Unit Sales Add : Direct Materials Der Unit Direct Materials Purchases Less Desired Ending Finished Goods Inventorv Total Materials Required LILY COMPANY Production Budget For the Six Months Ending June 30, 2027 Quarter 1 2 14850 15675

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 4CE: Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and...

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Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and sell 49,300 units at a price of 12.50 each. Beginning inventory of finished goods is 42,500, and ending inventory of finished goods is expected to be 34,000. Total selling expense is projected at 26,000, and total administrative expense is projected at 134,000. Required: 1. Prepare an income statement in good form. Be sure to include the percent of sales column. 2. What if the cost of goods sold percentage for the past few years was 65 percent? Explain how management might react.
The Sales Department of Minimus Inc. has forecast sales for May 2016 to be 40,000 units. Additional information follows: Materials used in production: Direct labor hours required in production: Prepare the following: a. A production budget for May. b. A direct materials budget for May. c. A direct labor budget for May.
Operating Budget, Comprehensive Analysis Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming 5 months follow: The following data pertain to production policies and manufacturing specifications followed by Allison Manufacturing: a. Finished goods inventory on January 1 is 32,000 units, each costing 166.06. The desired ending inventory for each month is 80% of the next months sales. b. The data on materials used are as follows: Inventory policy dictates that sufficient materials be on hand at the end of the month to produce 50% of the next months production needs. This is exactly the amount of material on hand on December 31 of the prior year. c. The direct labor used per unit of output is 3 hours. The average direct labor cost per hour is 14.25. d. Overhead each month is estimated using a flexible budget formula. (Note: Activity is measured in direct labor hours.) e. Monthly selling and administrative expenses are also estimated using a flexible budgeting formula. (Note: Activity is measured in units sold.) f. The unit selling price of the subassembly is 205. g. All sales and purchases are for cash. The cash balance on January 1 equals 400,000. The firm requires a minimum ending balance of 50,000. If the firm develops a cash shortage by the end of the month, sufficient cash is borrowed to cover the shortage. Any cash borrowed is repaid at the end of the quarter, as is the interest due (cash borrowed at the end of the quarter is repaid at the end of the following quarter). The interest rate is 12% per annum. No money is owed at the beginning of January. Required: 1. Prepare a monthly operating budget for the first quarter with the following schedules. (Note: Assume that there is no change in work-in-process inventories.) a. Sales budget b. Production budget c. Direct materials purchases budget d. Direct labor budget e. Overhead budget f. Selling and administrative expenses budget g. Ending finished goods inventory budget h. Cost of goods sold budget i. Budgeted income statement j. Cash budget 2. CONCEPTUAL CONNECTION Form a group with two or three other students. Locate a manufacturing plant in your community that has headquarters elsewhere. Interview the controller for the plant regarding the master budgeting process. Ask when the process starts each year, what schedules and budgets are prepared at the plant level, how the controller forecasts the amounts, and how those schedules and budgets fit in with the overall corporate budget. Is the budgetary process participative? Also, find out how budgets are used for performance analysis. Write a summary of the interview.
Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Refer to the information for Speedy Petes above. Assume that this information was used to construct the following formula for monthly delivery cost. TotalDeliveryCost=41,850+(12.00NumberofDeliveries) Required: Assume that 3,000 deliveries are budgeted for the following month of January. Use the total delivery cost formula for the following calculations: 1. Calculate total variable delivery cost for January. 2. Calculate total delivery cost for January.
Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 285,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of 4.75. (There are no beginning or ending inventories of work in process.) Required: 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. 2. What if sales increased to 290,000 discs? How would that affect the ending finished goods inventory budget? Calculate the value of budgeted ending finished goods inventory.
Blossom Company estimates that unit sales will be 8,000 in quarter 1, 11,200 in quarter 2, 12,000 in quarter 3, and 14,400 in quarter 4. The sales price is $70 per unit. Management desires to have an ending finished goods inventory equal to 25% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first 6 months of 2022. Expected Unit Sales Add V: Desired Ending Finished Goods Inventory Total Required Units Less V: Beginning Finished Goods Inventory Required Production Units BLOSSOM COMPANY Production Budget For the Six Months Ending June 30, 2022 V 1 8000 2800 10800 Quarter D 11200 3000 14200 Six Months
Vaughan company estimates that unit sales will be 10,500 in quarter 1; 11,400 in quarter 2; 13,400 in quarter 3; and 18600 in quarter 4. management wnta to have an ending finished goods inventory equal to 21% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first six months of 2022
The Management Accountant of Kafululu Plc has prepared the following budget information for theyear ending 31st December 2022 for product A. Annual Fixed Costs K270,000.00 Variable costs per unit K90.00 Contribution to sales ratio(C/S) 75% Annual budget units 1,500 Required:a) Calculate the contribution per unit for Product A. b) Calculate the Unit Selling Price for Product A. c) Calculate the Break Even Point for Product A. d) Calculate the margin of safety in Units and in percentage terms. e) If the Selling Price per Unit is reduced by 10%, variable cost per Unit is increased to K100.00and Fixed costs remain unchanged, calculate:i. The new Breakeven Point. ii. The total units that should be sold in order to make a profit of K450,000 in 2020.(
Paige Company estimates that unit sales will be 10,000 in quarter 1, 14,000 in quarter 2, 15,000 in quarter 3, and 18,000 in quarter 4. Management desires to have an ending finished goods inventory equal to 25% of the next quarter’s expected unit sales.Prepare a production budget by quarters for the first 6 months of 2020. PAIGE COMPANYProduction Budgetchoose the accounting period Quarter 1 2 Six Months select an opening name enter a number of units enter a number of units select between addition and deduction : select an item enter a number of units enter a number of units select a summarizing line enter a subtotal of the two previous…
Current Attempt in Progress Carla Vista Company expects to produce 1,200,000 units of product XX in 2022. Monthly production is expected to range from 72,700 to 109,700 units. Budgeted variable manufacturing costs per unit are as follows: direct materials $4, direct labour $7, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision $3. In March 2022, the company incurs the following costs in producing 91,200 units: direct materials $392,800, direct labour $634,400, and variable overhead $915,000. Actual fixed overhead equalled budgeted fixed overhead. Prepare a flexible budget report for March. (List variable costs before fixed costs.) $ $ Were costs controlled? Budget CARLA VISTA COMPANY Manufacturing Flexible Budget Report For the Month Ended March 31, 2022 V Actual Difference Favourable Unfavourable Neither Favourable nor Unfavourable
Whispering Winds Company estimates that unit sales will be 10,500 in quarter 1; 12,600 in quarter 2; 13,800 in quarter 3; and 17,800 in quarter 4. Management wants to have an ending finished goods inventory equal to 21% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first six months of 2022. WHISPERING WINDS COMPANY Production Budget For the Six Months Ending June 30, 2022 Quarter 1 2 Total
Paige Company estimates that unit sales will be 10,000 in quarter 1, 14,000 in quarter 2, 15,000 in quarter 3, and 18,000 in quarter 4. Using a sales price of $70 per unit.Prepare the sales budget by quarters for the year ending December 31, 2020. PAIGE COMPANYSales Budgetchoose the accounting period Quarter 1 2 3 4 Year select an opening name enter a number of units enter a number of units enter a number of units enter a number of units enter a total for the row select an item $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount select a closing name $enter a product of the two previous amounts $enter a product of the two previous…