Sagar Shadee Corporation expects to sell 560 sun shades in May and 310 in June. Each shade sells for $152. Shadee'sbeginning and ending finished goods inventories for May are 75 and 45 shades, respectively. Ending finished goodsinventory for June will be 55 shades.E8-9 (Algo) Preparing Selling and Administrative Expense Budget [LO 8-3g]Each shade requires a total of $60.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects tohave 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 120 poles in inventory on June 30.Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadee'sfixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $13 per unit produced.Additional information:Selling costs are expected to be 9 percent of sales.• Fixed administrative expenses per month total $1,300.Required:Prepare Shadee's selling and administrative expense budget for May and June.Note: Do not round your intermediate calculations. Round your answers to 2 decimal places.Budgeted Selling and Administrative ExpensesMayJune

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Answered: Shadee Corporation expects to sell 560…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 6CE: Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following...

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Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.
Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs $3.00 per yard. The companys policy is to have enough material on hand to equal 15% of next months production needs and to maintain a finished goods inventory equal to 20% of the next months production needs. What is the budgeted cost of purchases for March?
Lens & Shades sells sunglasses for $37 each and is estimating sales of 21,000 units in January and 19,000 in February. Each lens consist of 2.00 mm of plastic costing $2.50 per mm, 1.7 oz of dye costing $2.80 per ounce. and 0.50 hours direct labor at a labor rate of $18 per unit. Desired inventory levels are: Prepare a sales budget, production budget, direct materials budget for silicon and solution, and a direct labor budget.
Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing itsoperating budget for the coming year. Selected data regarding the companys two products areas follows: Manufacturing overhead is applied to units using direct labor hours. Variable manufacturing overhead Ls projected to be 25,000, and fixed manufacturing overhead is expected to be15,000. The estimated cost to produce one unit of the laminated putter head is: a. 42. b. 46. c. 52. d. 62.
Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.
Crescent Company produces stuffed toy animals; one of these is Arabeau the Cow. Each Arabeau takes 0.20 yard of fabric (white with irregular black splotches) and eight ounces of polyfiberfill. Fabric costs 3.50 per yard and polyfiberfill is 0.05 per ounce. Crescent has budgeted production of Arabeaus for the next four months as follows: Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 20 percent of the following months production needs and sufficient polyfiberfill be in inventory to satisfy 40 percent of the following months production needs. Inventory of fabric and polyfiberfill at the beginning of October equals exactly the amount needed to satisfy the inventory policy. Each Arabeau produced requires (on average) 0.10 direct labor hour. The average cost of direct labor is 15 per hour. Required: 1. Prepare a direct materials purchases budget of fabric for the last quarter of the year showing purchases in units and in dollars for each month and for the quarter in total. 2. Prepare a direct materials purchases budget of polyfiberfill for the last quarter of the year showing purchases in units and in dollars for each month and for the quarter in total. 3. Prepare a direct labor budget for the last quarter of the year showing the hours needed and the direct labor cost for each month and for the quarter in total.
TIB makes custom guitars and prepared the following sales budget for the second quarter It also has this additional information related to its expenses: Direct material per unit $55, Direct labor per hour 20, Variable manufacturing overhead per hour 3.50, Fixed manufacturing overhead per month 3,000, Sales commissions per unit 20, Sales salaries per month 5,000, Delivery expense per unit 0.50, Utilities per month 4,000. Administrative salaries per month 20,000, Marketing expenses per month 8,000, Insurance expense per month 11,000, Depreciation expense per month 9,000. Prepare a sales and administrative expense budget for each month in the quarter ended June 30. 2018.
Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the followingmanufacturing costs: Direct materials $1.67Direct labor 0.56Variable overhead 0.72Fixed overhead 1.80Total unit cost $4.75 For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 285,000of them. Budgeted beginning inventory in units is 16,000 with unit cost of $4.75. (There are no beginning or ending inventories of work in process.)Required:1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. 2. What if sales increased to 290,000 discs? How would that affect the ending finished goods in-ventory budget? Calculate the value of budgeted ending finished goods inventory.
Vishnu
Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: Direct materials $1.65 Direct labor 0.50 Variable overhead 0.75 Fixed overhead 1.90 Total unit cost $4.80 For the coming year, Play-Disc expects to make 380,000 plastic discs, and to sell 369,000 of them. Budgeted beginning inventory in units is 20,000 with unit cost of $4.80. (There are no beginning or ending inventories of work in process.) Required: 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. If required, round your answers to the nearest cent. Play-DiscEnding Finished Goods Inventory BudgetFor the Coming Year Unit costs: Direct materials $______ Direct labor _____ Overhead: _____ Budgeted variable overhead ______ Budgeted fixed overhead ______ Total cost per unit $______ Total ending inventory cost $_____ 2. What if sales increased to 379,000 discs? How would that…
Each unit requires 3 pounds of direct materials, which cost $6 per pound. The company's policy is to maintain direct materials inventory equal to 30% of the next month's direct materials requirement. As of June 30, the company has 3,690 pounds of direct materials in inventory. Prepare the direct materials budget for July. Answer is not complete. Units to produce MIAMI SOLAR Direct Materials Budget Materials required per unit (pounds) Materials needed for production (pounds) Add: Desired ending materials inventory Total materials required (pounds) Add: Beginning materials inventory (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases July 4,100 3 12,300
Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: Direct materials $1.80 Direct labor 0.50 Variable overhead 0.85 Fixed overhead 1.85 Total unit cost $5.00 For the coming year, Play-Disc expects to make 400,000 plastic discs, and to sell 383,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of $5.00. (There are no beginning or ending inventories of work in process.) Required: Question Content Area 1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead. Budgeted direct materials $fill in the blank 21aae9fe404efef_1 Budgeted direct labor fill in the blank 21aae9fe404efef_2 Budgeted overhead fill in the blank 21aae9fe404efef_3 Total budgeted manufacturing cost $fill in the blank 21aae9fe404efef_4 Question Content Area 2. Prepare a cost of goods sold…

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