Quetzaltenango Candle Inc. budgeted production of 685,000 candles for March. Each candle requires molding. Assume that 6 minutes are required to mold each candle. If molding labor costs $15 per hour, determine the direct labor cost budget for March. Wax is required to produce a candle. Assume 342,000 pounds of material will be purchased during March. The candle wax costs $1.20 per pound. Prepare a cost of goods sold budget for Quetzaltenango Candle Inc. using the information above. Assume the estimated inventories on March 1 for finished goods and work in process were $300,000 and $41,250, respectively and direct materials wax inventory f 15,000 pounds. Also assume the desired inventories on March 31 for finished goods and work in process were $200,000 and $28,500, respectively and direct materials wax inventory of 14,500 pounds. Factory overhead was budgeted at $400,000. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Quetzaltenango Candle Inc. Cost of Goods Sold Budget For the Month Ending March 31 Amount Line Item Description Finished goods inventory, March 1 Work in process inventory, March 1 Direct materials: Direct materials inventory, March 1 Direct materials purchases ✓ Cost of direct materials available for use Direct materials inventory, March 31 Cost of direct materials placed in production Direct labor Factory overhead ✓ Total manufacturing costs ✓ Total work in process during period Work in process inventory, March 31 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, March 31 Cost of goods sold ✓ ✓ ✓ ✓ ✓ 0000000 Amount Amount 000 ୦୦୦୦
Quetzaltenango Candle Inc. budgeted production of 685,000 candles for March. Each candle requires molding. Assume that 6 minutes are required to mold each candle. If molding labor costs $15 per hour, determine the direct labor cost budget for March. Wax is required to produce a candle. Assume 342,000 pounds of material will be purchased during March. The candle wax costs $1.20 per pound. Prepare a cost of goods sold budget for Quetzaltenango Candle Inc. using the information above. Assume the estimated inventories on March 1 for finished goods and work in process were $300,000 and $41,250, respectively and direct materials wax inventory f 15,000 pounds. Also assume the desired inventories on March 31 for finished goods and work in process were $200,000 and $28,500, respectively and direct materials wax inventory of 14,500 pounds. Factory overhead was budgeted at $400,000. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Quetzaltenango Candle Inc. Cost of Goods Sold Budget For the Month Ending March 31 Amount Line Item Description Finished goods inventory, March 1 Work in process inventory, March 1 Direct materials: Direct materials inventory, March 1 Direct materials purchases ✓ Cost of direct materials available for use Direct materials inventory, March 31 Cost of direct materials placed in production Direct labor Factory overhead ✓ Total manufacturing costs ✓ Total work in process during period Work in process inventory, March 31 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, March 31 Cost of goods sold ✓ ✓ ✓ ✓ ✓ 0000000 Amount Amount 000 ୦୦୦୦
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Homework help. Chapter 22 number 4. Need help filling in the missing data. Thank You!
Transcribed Image Text:Cost of goods sold budget
Quetzaltenango Candle Inc. budgeted production of 685,000 candles for March. Each candle requires molding. Assume that 6 minutes are required to mold each candle. If molding labor costs $15 per hour, determine the direct labor cost budget for
March. Wax is required to produce a candle. Assume 342,000 pounds of material will be purchased during March. The candle wax costs $1.20 per pound.
Prepare a cost of goods sold budget for Quetzaltenango Candle Inc. using the information above. Assume the estimated inventories on March 1 for finished goods and work in process were $300,000 and $41,250, respectively and direct materials wax
inventory of 15,000 pounds. Also assume the desired inventories on March 31 for finished goods and work in process were $200,000 and $28,500, respectively and direct materials wax inventory of 14,500 pounds. Factory overhead was budgeted at
$400,000. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Quetzaltenango Candle Inc.
Cost of Goods Sold Budget
For the Month Ending March 31
Line Item Description
Finished goods inventory, March
Work in process inventory, March 1
Direct materials:
✓
Total manufacturing costs
Direct materials inventory, March 1
Direct materials purchases
✓
Cost of direct materials available for use
Direct materials inventory, March 31
Cost of direct materials placed in production
Direct labor
✓
Factory overhead
V
Total work in process during period
Work in process inventory, March 31
✓
✓
Cost of goods manufactured
Cost of finished goods available for sale
Finished goods inventory, March 31
Cost of goods sold
✓
✓
✓
✓
Amount Amount Amount
0000000
000
10000
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