The production budget should be integrated with the sales budget to ensure that production and sales are kept in balance during the year. The production budget estimates the number of units to be manufactured to meet budgeted sales and desired inventory levels. You note that LearnCo has omitted six numbers from the following production budget and fill in the missing amounts. You may need to use numbers from the sales budget you prepared. LearnCo Production Budget For the Year Ending December 31, 20Y2 Units Basic Units Deluxe Expected units to be sold (from Sales Budget) 36000 36000 Desired ending inventory, December 31, 20Y2 1,000 3,000 Total units available 37000 39000 Estimated beginning inventory, January 1, 20Y2 (1,050) (2,100) Total units to be produced 35950 36900 Direct labor needs from the direct labor cost budget should be coordinated between the production and personnel departments so that there will be enough labor available for production. Before you make any changes to the budget, you review the information in the following Direct Labor Data Table and enter the units to be produced from the Production Budget panel. After scanning the Direct Labor Cost Budget (which follows the Direct Labor Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Labor Data Table, or from the sales budget, production budget, and direct materials purchases budget you prepared. When required, round your answers to the nearest dollar. Direct Labor Data Table Gluing Assembly Hours required per unit: Basic abacus 0.10 0.10 Deluxe abacus 0.10 0.20 Labor hourly rate: Gluing $11.00 Assembly $19.00 Units to be produced (from Production Budget): Basic abacus 35950 Deluxe abacus 36900 LearnCo Direct Labor Cost Budget For the Year Ending December 31, 20Y2 Gluing Assembly Total Hours required for production: Basic abacus Deluxe abacus Total Hourly rate x 11 x 19 Total direct labor cost $288,660
The production budget should be integrated with the sales budget to ensure that production and sales are kept in balance during the year. The production budget estimates the number of units to be manufactured to meet budgeted sales and desired inventory levels. You note that LearnCo has omitted six numbers from the following production budget and fill in the missing amounts. You may need to use numbers from the sales budget you prepared. LearnCo Production Budget For the Year Ending December 31, 20Y2 Units Basic Units Deluxe Expected units to be sold (from Sales Budget) 36000 36000 Desired ending inventory, December 31, 20Y2 1,000 3,000 Total units available 37000 39000 Estimated beginning inventory, January 1, 20Y2 (1,050) (2,100) Total units to be produced 35950 36900 Direct labor needs from the direct labor cost budget should be coordinated between the production and personnel departments so that there will be enough labor available for production. Before you make any changes to the budget, you review the information in the following Direct Labor Data Table and enter the units to be produced from the Production Budget panel. After scanning the Direct Labor Cost Budget (which follows the Direct Labor Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Labor Data Table, or from the sales budget, production budget, and direct materials purchases budget you prepared. When required, round your answers to the nearest dollar. Direct Labor Data Table Gluing Assembly Hours required per unit: Basic abacus 0.10 0.10 Deluxe abacus 0.10 0.20 Labor hourly rate: Gluing $11.00 Assembly $19.00 Units to be produced (from Production Budget): Basic abacus 35950 Deluxe abacus 36900 LearnCo Direct Labor Cost Budget For the Year Ending December 31, 20Y2 Gluing Assembly Total Hours required for production: Basic abacus Deluxe abacus Total Hourly rate x 11 x 19 Total direct labor cost $288,660
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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
The production budget should be integrated with the sales budget to ensure that production and sales are kept in balance during the year. The production budget estimates the number of units to be manufactured to meet budgeted sales and desired inventory levels.
You note that LearnCo has omitted six numbers from the following production budget and fill in the missing amounts. You may need to use numbers from the sales budget you prepared.
| LearnCo | ||
| Production Budget | ||
| For the Year Ending December 31, 20Y2 | ||
| Units Basic | Units Deluxe | |
| Expected units to be sold (from Sales Budget) |
36000
|
36000
|
| Desired ending inventory, December 31, 20Y2 | 1,000 | 3,000 |
| Total units available |
37000
|
39000
|
| Estimated beginning inventory, January 1, 20Y2 | (1,050) | (2,100) |
| Total units to be produced |
35950
|
36900
|
Direct labor needs from the direct labor cost budget should be coordinated between the production and personnel departments so that there will be enough labor available for production.
Before you make any changes to the budget, you review the information in the following Direct Labor Data Table and enter the units to be produced from the Production Budget panel. After scanning the Direct Labor Cost Budget (which follows the Direct Labor Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Labor Data Table, or from the sales budget, production budget, and direct materials purchases budget you prepared. When required, round your answers to the nearest dollar.
|
Direct Labor Data Table
|
|
|
| Gluing | Assembly | |
| Hours required per unit: | ||
| Basic abacus | 0.10 | 0.10 |
| Deluxe abacus | 0.10 | 0.20 |
| Labor hourly rate: | ||
| Gluing | $11.00 | |
| Assembly | $19.00 | |
| Units to be produced (from Production Budget): | ||
| Basic abacus |
35950
|
|
| Deluxe abacus |
36900
|
| LearnCo | |||
| Direct Labor Cost Budget | |||
| For the Year Ending December 31, 20Y2 | |||
| Gluing | Assembly | Total | |
| Hours required for production: | |||
| Basic abacus |
|
|
|
| Deluxe abacus |
|
|
|
| Total |
|
|
|
| Hourly rate | x 11
|
x 19
|
|
| Total direct labor cost |
|
|
$288,660 |
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