Prepare production and direct materials budgets by quarters for six months. E10.21 (LO 2) On January 1, 2023, the Chinlee Company budget committee reached agreement on the following data for the six months ending June 30, 2023: 1. Sales units: First quarter 5,000; second quarter 6,000; third quarter 7,000 2. Ending raw materials inventory: 40% of the next quarter's production requirements 3. Ending finished goods inventory: 25% of the next quarter's expected sales units 4. Third-quarter production: 7,200 units The ending raw materials and finished goods inventories at December 31, 2022, had the same percentages for production and sales that are budgeted for 2023. Three kilograms of raw materials are needed to make each unit of finished goods. Raw materials purchased are expected to cost $4 per kilogram. Instructions a. Prepare a production budget by quarters for the six-month period ended June 30, 2023. b. Prepare a direct materials budget by quarters for the six-month period ended June 30, 2023.

Prepare production and direct materials budgets by quarters for six months. E10.21 (LO 2) On January 1, 2023, the Chinlee Company budget committee reached agreement on the following data for the six months ending June 30, 2023: 1. Sales units: First quarter 5,000; second quarter 6,000; third quarter 7,000 2. Ending raw materials inventory: 40% of the next quarter's production requirements 3. Ending finished goods inventory: 25% of the next quarter's expected sales units 4. Third-quarter production: 7,200 units The ending raw materials and finished goods inventories at December 31, 2022, had the same percentages for production and sales that are budgeted for 2023. Three kilograms of raw materials are needed to make each unit of finished goods. Raw materials purchased are expected to cost $4 per kilogram. Instructions a. Prepare a production budget by quarters for the six-month period ended June 30, 2023. b. Prepare a direct materials budget by quarters for the six-month period ended June 30, 2023.

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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Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $157,830 budgeted expenses include $109,350 in variable expenses for desks and $18,480 in variable expenses for chairs, as well as $30,000 of fixed expenses. Actual fixed expenses total $31,800. Desk sales (in units) Chair sales (in units); Desk sales Chair sales Total expenses Income For Quarter Ended June 30 Desk sales Chair sales Variable expenses Contribution margin Fixed Budget Fixed expenses Income Actual Results Variances 135 141 56 64 Dok 28,560 33,600 157,830 167,530 $ 176,850 $ 183,300 $ 6,450 P 5,040 P 9,700 U Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. $ 47,580 $ 49,370 $ 1,790 F BUSINESS SOLUTIONS Flexible Budget Performance Report Flexible Budget Actual Results Variance Favorable…
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A company is preparing budgets for the quarter ending Mar 31, 2020.Jan 10,000 unitsFeb 50,000 unitsMar 30,000 unitsApr 60,000 unitsMay 40,000 unitsThe management of this company assumes the following:1) Selling price is $5.2) On Dec 31, 2019, the finished goods totaled 3,000 units. Finished goods at the end of each month must be 20% of the following month’s budgeted sales.3) All sales are on account. 70% of the credit sales are collected in the month of sale, 25% in the month following sale, and the remainders are uncollectible.4) On Dec 31, 2019, the cash balance is $10,000. Q: The company predicts only 50% of the budgeted sales in units can be achieved. Moreover, the company decides to cut the selling price to $3, and the company expects 50% of credit sales can be collected in the month of sale, 20% in the month following sale, the reminders are not collectible. The other things being the same. Please prepare the cash collection and required production (in units) for January,…
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Units to be produced 7,680 8,480 8,860 8,860 33,880 Direct material per unit 2 2 2 2 2 Total pounds needed for production 15,360 16,960 17,720 17,720 67,760 Add: Desired ending inventory 4,240 4,430 4,430 3,600 3,600 Total material required 19,600 21,390 22,150 21,320 71,360 Less: Beginning inventory 4,240 4,430 4,430 Pounds of direct material purchase requirements 19,600 17,150 17,720 16,890 71,360 Cost per pound $1.50 $1.50 $1.50 $1.50 $1.50 Total cost of direct material purchase $29,400 $25,725 $26,580 $25,335 $107,040 Total $107,040 Direct Labor Budget For the Year Ending Dec. 31, 2018 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Units to be produced 7,680 8,480 8,860 Direct labor hours per unit 0.75 0.75 0.75 0.75 0.75 Total required direct labor hours 5,760 6,360 6,645 6,645 Labor cost per hour $25 $25 $25 $25 $25 Total direct labor cost $144,000 $159,000 $166,125 $ $635,250
(J) please answer ASap... Question 1 The following table presents selected information for Superior Flooring's monthly production budgets for the coming year. Superior's inventory policy is to have ending inventory equal to 10% of the next month's sales. What is the beginning inventory in June? A. 350 B. 310 C. 250 D. 340 Question 2 Which of the following statements is true? A. A budget reconciliation report shows the difference between actual profit and budgeted profit and does not show the other variances. B. Activity-based costing is not used to evaluate customer profitability. C. Sales quantity (budgeted sales volume vs. actual sales volume) is the only item which differs between the master budget and the flexible budget. D. Comparing the flexible budget to the as-if budget isolates a change in input price (e.g. budgeted input price vs. actual input price). Question 3 Which of the following is not a benefit of budgeting? A. It reduces the need for analysis with regard to company…
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Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $179,710 budgeted expenses include $122.010 in variable expenses for desks and $20,700 in variable expenses for chairs, as well as $37,000 of fixed expenses. Actual fixed expenses total $38,300. Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Income For Quarter Ended June 30 Desk sales Chair sales Variable expenses Contribution margin Fixed Budget 147 69 Fixed expenses Income Actual Results 153 77 Variances $ 188,160 37,950 179,718 $ 46,400 $ 48,975 $ 2,575 F $ 194,310 43,505 188,840 Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results. (Indicate the effect of each varlance by selecting favorable, unfavorable, or no variance.) $ 6,150 F 5,555 F 9,130 U BUSINESS SOLUTIONS Flexible Budget Performance Report Flexible Budget Actual Results Variance…
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