Question 1 Recently, Mewah Designs expanded its market by becoming an original equipment supplier to Jee Wrangler. Mewah Designs produces factory upgraded speakers specifically for Jee Wrangler. The Kicker components and speaker cabinets are outsourced with assembly remaining in-house. Mewah Designs assemble the product by placing the speakers and other components in cabinets that define an audio package upgrade and that can be placed into the Jee Wrangler, producing the desired factory-installed appearance. Speaker cabinets and associated Kicker components are added at the beginning of the assembly process. Assume that Mewah Designs uses the weighted-average method to cost out the audio package.
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 1
Recently, Mewah Designs expanded its market by becoming an original equipment supplier to
Jee Wrangler. Mewah Designs produces factory upgraded speakers specifically for Jee
Wrangler. The Kicker components and speaker cabinets are outsourced with assembly
remaining in-house. Mewah Designs assemble the product by placing the speakers and other
components in cabinets that define an audio package upgrade and that can be placed into the
Jee Wrangler, producing the desired factory-installed appearance. Speaker cabinets and
associated Kicker components are added at the beginning of the assembly process.
Assume that Mewah Designs uses the weighted-average method to cost out the audio package.
The following are cost and production data for the assembly process for April:
Production:
Units in process, April 1, 60% complete
Units completed and transferred out
Units in process, April 30, 20% complete
60,000
150,000
30,000
Costs:
WIP, April 1:
Cabinets
RM 1,200,000
Kicker components
RM 12,600,000
Conversion costs
RM 5,400,000
Costs added during April:
Cabinets
RM 2,400,000
Kicker components
RM 25,200,000
Conversion costs
RM 8,640,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F52eec283-bf7a-4747-b2ad-4e753cf3b01d%2F1a6f137e-4a50-4402-9bde-ad1ac39946d8%2F7j5asb8_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)