FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables.The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements.Type of BoxDirect material required per 100 boxes:Paperboard ($0.30 per pound)Corrugating medium ($0.15 per pound).Direct labor required per 100 boxes ($18.00 per hour).Indirect materialIndirect laborUtilitiesProperty taxesInsuranceDepreciation.TotalC$12,15095,85031,50021,00016,000.33,500$210,000Total40 pounds30 pounds0.25 hourThe following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based ona production volume of 400,000 units for each type of box. Production overhead is applied on the basis of direct-laborhours.The following selling and administrative expenses are anticipated for the next year.Salaries and fringe benefits of sales personnel.Advertising$115,50023,500Management salaries and fringe benefits.137,000clerical wages and fringe benefits40,000Miscellaneous administrative expenses6,200$322,200P80 pounds40 pounds0.50 hour The sales forecast for the next year is as follows:Sales Volume405,000 boxes405,000 boxesBox type CBox type PThe following inventory information is available for the next year. The unit production costs for each product are expectedto be the same this year and next year.Finished goods:Box type cBox type PRaw material:Sales Price$125.00 per hundred boxes185.00 per hundred boxesSales (in units)Sales price per unitSales revenueExpected InventoryJanuary 112,000 boxes22,000 boxes$$ 50,625,00016,000 pounds6,000 poundsPaperboardCorrugating medium6,000 pounds11,000 poundsPrepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent.Required:1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.)Desired Ending InventoryDecember 31Answer is complete but not entirely correct.Box C405,000125.00 $Box P405,000185.00$ 74,925,000Total7,000 boxes17,000 boxes125,550,000

Budgeting enables you to make better financial decisions. By analyzing your income and expenses, you…

The sales forecast for the next year is as follows: Sales Volume 405,000 boxes 405,000 boxes Box type C Box type P The following inventory information is available for the next year. The unit production costs for each product are expected to be the same this year and next year. Finished goods: Box type c Box type P Raw material: Paperboard Corrugating medium Sales Price $125.00 per hundred boxes 185.00 per hundred boxes Sales (in units) Sales price per unit Sales revenue Expected Inventory January 1 12,000 boxes 22,000 boxes $ $ 50,625,000 16,000 pounds 6,000 pounds 6,000 pounds 11,000 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent. Desired Ending Inventory December 31 Required: 1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.) Answer is complete but not entirely correct. Box P Box C 405,000 405,000 125.00 $ 185.00 $ 74,925,000 Total 7,000 boxes 17,000 boxes 125,550,000

The sales forecast for the next year is as follows: Sales Volume 405,000 boxes 405,000 boxes Box type C Box type P The following inventory information is available for the next year. The unit production costs for each product are expected to be the same this year and next year. Finished goods: Box type c Box type P Raw material: Paperboard Corrugating medium Sales Price $125.00 per hundred boxes 185.00 per hundred boxes Sales (in units) Sales price per unit Sales revenue Expected Inventory January 1 12,000 boxes 22,000 boxes $ $ 50,625,000 16,000 pounds 6,000 pounds 6,000 pounds 11,000 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent. Desired Ending Inventory December 31 Required: 1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.) Answer is complete but not entirely correct. Box P Box C 405,000 405,000 125.00 $ 185.00 $ 74,925,000 Total 7,000 boxes 17,000 boxes 125,550,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 19E: Process activity analysis The Brite Beverage Company bottles soft drinks into aluminum cans. The...

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Concept explainers

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

FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables.
The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements.
Type of Box
Direct material required per 100 boxes:
Paperboard ($0.30 per pound)
Corrugating medium ($0.15 per pound).
Direct labor required per 100 boxes ($18.00 per hour).
Indirect material
Indirect labor
Utilities
Property taxes
Insurance
Depreciation.
Total
C
$12,150
95,850
31,500
21,000
16,000.
33,500
$210,000
Total
40 pounds
30 pounds
0.25 hour
The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on
a production volume of 400,000 units for each type of box. Production overhead is applied on the basis of direct-labor
hours.
The following selling and administrative expenses are anticipated for the next year.
Salaries and fringe benefits of sales personnel.
Advertising
$115,500
23,500
Management salaries and fringe benefits.
137,000
clerical wages and fringe benefits
40,000
Miscellaneous administrative expenses
6,200
$322,200
P
80 pounds
40 pounds
0.50 hour

The sales forecast for the next year is as follows:
Sales Volume
405,000 boxes
405,000 boxes
Box type C
Box type P
The following inventory information is available for the next year. The unit production costs for each product are expected
to be the same this year and next year.
Finished goods:
Box type c
Box type P
Raw material:
Sales Price
$125.00 per hundred boxes
185.00 per hundred boxes
Sales (in units)
Sales price per unit
Sales revenue
Expected Inventory
January 1
12,000 boxes
22,000 boxes
$
$ 50,625,000
16,000 pounds
6,000 pounds
Paperboard
Corrugating medium
6,000 pounds
11,000 pounds
Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent.
Required:
1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.)
Desired Ending Inventory
December 31
Answer is complete but not entirely correct.
Box C
405,000
125.00 $
Box P
405,000
185.00
$ 74,925,000
Total
7,000 boxes
17,000 boxes
125,550,000

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FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (Type C) and the perishable food box (Type P) have the following material and labor requirements. Direct material required per 100 boxes: Type C Type P Paperboard ( $0.20 per pound) 30 pounds 70 pounds Corrugating medium ( $0.10 per pound) 20 pounds 30 pounds Direct labor required per 100 boxes ($12.00 per hour) 0.25 hour 0.50 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 495,000 units for each type of box. Production overhead is applied on the basis of direct labor hours. Indirect material $10,500 Indirect labor $50,000 Utilities $25,000 Property taxes $18,000 Insurance $16,000 Depreciation $29,000 Total $148,500 The following selling and administrative expenses are anticipated for the next year. Salaries and…
FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (Type C) and the perishable food box (Type P) have the following material and labor requirements. Direct material required per 100 boxes: Type C Type P Paperboard ( $0.20 per pound) 30 pounds 70 pounds Corrugating medium ( $0.10 per pound) 20 pounds 30 pounds Direct labor required per 100 boxes ($12.00 per hour) 0.25 hour 0.50 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 495,000 units for each type of box. Production overhead is applied on the basis of direct labor hours. Indirect material $10,500 Indirect labor $50,000 Utilities $25,000 Property taxes $18,000 Insurance $16,000 Depreciation $29,000 Total $148,500 The following selling and administrative expenses are anticipated for the next year. Salaries and…
FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (Type C) and the perishable food box (Type P) have the following material and labor requirements. Direct material required per 100 boxes: Type C Type P Paperboard ( $0.20 per pound) 30 pounds 70 pounds Corrugating medium ( $0.10 per pound) 20 pounds 30 pounds Direct labor required per 100 boxes ($12.00 per hour) 0.25 hour 0.50 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 495,000 units for each type of box. Production overhead is applied on the basis of direct labor hours. Indirect material $10,500 Indirect labor $50,000 Utilities $25,000 Property taxes $18,000 Insurance $16,000 Depreciation $29,000 Total $148,500 The following selling and administrative expenses are anticipated for the next year. Salaries and…
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