Oriole Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the data shown below. Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Direct labor rate per hour Budgeted income statement: Total unit cost Product JB 50 416,000 31,200 26,000 $25 31,200 $12 2 41,600 $13 $3 0.4 $12 Product JB 60 208,000 15,600 10,400 $30 10,400 $12 3 15,600 $20 $4 0.6 $12 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $582,400 for product JB 50 and $374,400 for product JB 60, and administrative expenses of $561,600 for product JB 50 and $353,600 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 20%.
Oriole Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the data shown below. Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Direct labor rate per hour Budgeted income statement: Total unit cost Product JB 50 416,000 31,200 26,000 $25 31,200 $12 2 41,600 $13 $3 0.4 $12 Product JB 60 208,000 15,600 10,400 $30 10,400 $12 3 15,600 $20 $4 0.6 $12 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $582,400 for product JB 50 and $374,400 for product JB 60, and administrative expenses of $561,600 for product JB 50 and $353,600 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 20%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Am. 308.
Transcribed Image Text:Oriole Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the data shown
below.
Sales budget:
Anticipated volume in units
Unit selling price
Production budget:
Desired ending finished goods units
Beginning finished goods units
Direct materials budget:
Direct materials per unit (pounds)
Desired ending direct materials pounds
Beginning direct materials pounds
Cost per pound
Direct labor budget:
Direct labor time per unit
Direct labor rate per hour
Direct labor rate per hour
Budgeted income statement:
Total unit cost
Prepare the direct materials budget for the year.
Product
JB 50
416,000
V:
31,200
26,000
$12
$25
31,200
41,600
$13
T
2
$3
0.4
$12
Product
JB 60
208,000
15,600
10,400
$
$30
$12
10,400
$20
3
15,600
An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget.
The latter shows selling expenses of $582,400 for product JB 50 and $374,400 for product JB 60, and administrative expenses of
$561,600 for product JB 50 and $353,600 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes
are expected to be 20%.
$4
0.6
$12
ORIOLE INC.
Direct Materials Budget
JB 50
JB 60
$
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