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Please Explain Proper Step by Step and Do Not Give Solution In Image Format And Fast Answering Please Thanks In Advance ?

Please Explain Proper Step by Step and Do Not Give Solution In Image Format And Fast Answering Please Thanks In Advance ?

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 20BEA: Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and...
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Please Explain Proper Step by Step and Do Not Give Solution In Image Format And Fast Answering Please Thanks In Advance ?

create a sales budget, production budget, direct materials purchases budget, and direct labor budget. Exercise 1) Using the template provided to you, create a sales budget, production budget, direct materials purchases budget, and direct labor budget. Only rows that say 2D should have 2 decimal places. All other numbers should be rounded to the nearest unit or dollar amount (i.e., no decimals). Volcano Company is a high-technology organization that produces a mass-storage system. The units Volcano produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (2023). The budget will detail each quarter's activity and the activity for the year in total. The master budget will be based on the following information: a. Fourth-quarter sales for 2022 are 69,300 units. b. Unit sales by quarter (for 2023) are projected as follows: First quarter Second quarter Third quarter Fourth quarter 71,270 83,990 97,909 110,822 The selling price is $584 per unit. All sales are credit sales. Volcano collects 80% of all sales within the quarter in which they are realized; the other 20% is collected in the following quarter. There are no bad debts. c. There are 10,550 units in beginning inventory of finished goods. Volcano is planning the following ending finished goods inventories for each quarter. First quarter Second quarter Third quarter Fourth quarter 18,450 units 14,405 units 28,350 units 20,020 units d. Each mass-storage unit uses 4.25 hours of direct labor and 5.75 units of direct materials. Laborers are paid $21.98 per hour, and one unit of direct materials costs $73.35. e. At the end of each quarter, Volcano plans to have 31.21% of the direct materials needed for next quarter's production needs. Volcano will end the year with the same amount of direct materials found in the year's beginning inventory.
Transcribed Image Text:create a sales budget, production budget, direct materials purchases budget, and direct labor budget. Exercise 1) Using the template provided to you, create a sales budget, production budget, direct materials purchases budget, and direct labor budget. Only rows that say 2D should have 2 decimal places. All other numbers should be rounded to the nearest unit or dollar amount (i.e., no decimals). Volcano Company is a high-technology organization that produces a mass-storage system. The units Volcano produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (2023). The budget will detail each quarter's activity and the activity for the year in total. The master budget will be based on the following information: a. Fourth-quarter sales for 2022 are 69,300 units. b. Unit sales by quarter (for 2023) are projected as follows: First quarter Second quarter Third quarter Fourth quarter 71,270 83,990 97,909 110,822 The selling price is $584 per unit. All sales are credit sales. Volcano collects 80% of all sales within the quarter in which they are realized; the other 20% is collected in the following quarter. There are no bad debts. c. There are 10,550 units in beginning inventory of finished goods. Volcano is planning the following ending finished goods inventories for each quarter. First quarter Second quarter Third quarter Fourth quarter 18,450 units 14,405 units 28,350 units 20,020 units d. Each mass-storage unit uses 4.25 hours of direct labor and 5.75 units of direct materials. Laborers are paid $21.98 per hour, and one unit of direct materials costs $73.35. e. At the end of each quarter, Volcano plans to have 31.21% of the direct materials needed for next quarter's production needs. Volcano will end the year with the same amount of direct materials found in the year's beginning inventory.
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