Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: Direct materials $1.65 0.60 Direct labor Variable overhead 0.85 Fixed overhead 1.80 Total unit cost For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 289,000 of them. Budgeted beginning inventory in units is 19,000 with unit cost of $4.90. (There are no beginning or ending inventories of work in process.) Required: 1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead. Budgated direct materials Budgeted direct labor Budgeted overhead Total budgeted manufacturing cost $4.90 2. Prepare a cost of goods sold budget for Play-Disc for the year. Play-Disc Cost of Goods Sold Budget For the Year Total manufacturing cost Cost of goods sold 3. What if the beginning inventory of finished goods was $92,200 (for 19,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.) The cost of goods sold would ( to
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.
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