Question 26 ACME Corporation produces scarves for all occasions in a variety of designer colours. 2022 Master budget data is as follows: Quarter 4 (Jan - Mar) (Apr Jun) (Jul - Sep) (Oct- Dec) Total Sales (units) 15,000 18,000 21,000 24,000 78,000 Unit Price $100 $100 $100 $100 Production (units) 18,000 21,600 25,200 28,800 93,600 Raw material required per unit (yards) 1.5 1.5 1.5 1.5 Raw material price per yard $20 $20 $20 $20 Direct labour hours per unit 21 Direct labour rate $20 $20 $20 $20 Manufacturing overhead allocations per unit $10 $10 $10 $10 Selling, general and administrative expenses $195,000 $195,000 $195,000 $195,000 $780,000 Required: For the First (1st) quarter of 2022 a) Calculate ACME Corporation's cost of goods sold please show your calculations. b) Prepare ACME Corporation's budgeted multi-step income statement; ignore interest and taxes.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 26
ACME Corporation produces scarves for all occasions in a variety of designer
colours. 2022 Master budget data is as follows:
Quarter
2
3
4
(Jan - Mar) (Apr - Jun)
(Jul - Sep) (Oct - Dec)
Total
Sales (units)
15,000
18,000
21,000
24,000
78,000
Unit Price
$100
$100
$100
$100
Production (units)
18,000
21,600
25,200
28,800
93,600
Raw material required per unit (yards)
1.5
1.5
1.5
1.5
Raw material price per yard
$20
$20
$20
$20
Direct labour hours per unit
2
2
Direct labour rate
$20
$20
$20
$20
Manufacturing overhead allocations per unit
$10
$10
$10
$10
Selling, general and administrative expenses
$195,000
$195,000
$195,000
$195,000
$780,000
Required: For the First (1st) quarter of 2022
a) Calculate ACME Corporation's cost of goods sold - please show your calculations.
b) Prepare ACME Corporation's budgeted multi-step income statement; ignore
interest and taxes.
Transcribed Image Text:Question 26 ACME Corporation produces scarves for all occasions in a variety of designer colours. 2022 Master budget data is as follows: Quarter 2 3 4 (Jan - Mar) (Apr - Jun) (Jul - Sep) (Oct - Dec) Total Sales (units) 15,000 18,000 21,000 24,000 78,000 Unit Price $100 $100 $100 $100 Production (units) 18,000 21,600 25,200 28,800 93,600 Raw material required per unit (yards) 1.5 1.5 1.5 1.5 Raw material price per yard $20 $20 $20 $20 Direct labour hours per unit 2 2 Direct labour rate $20 $20 $20 $20 Manufacturing overhead allocations per unit $10 $10 $10 $10 Selling, general and administrative expenses $195,000 $195,000 $195,000 $195,000 $780,000 Required: For the First (1st) quarter of 2022 a) Calculate ACME Corporation's cost of goods sold - please show your calculations. b) Prepare ACME Corporation's budgeted multi-step income statement; ignore interest and taxes.
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