uestion Content Area Cost of Goods Sold Budget Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing cost

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
100%
  1. Question Content Area

    Cost of Goods Sold Budget

    Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs:

    Direct materials $1.80
    Direct labor 0.45
    Variable overhead 0.75
    Fixed overhead 1.85
        Total unit cost $4.85

    For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 286,000 of them. Budgeted beginning inventory in units is 18,000 with unit cost of $4.85. (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 7fbb030b9f9906d_1
    Budgeted direct labor fill in the blank 7fbb030b9f9906d_2
    Budgeted overhead fill in the blank 7fbb030b9f9906d_3
    Total budgeted manufacturing cost $fill in the blank 7fbb030b9f9906d_4
     

    Question Content Area

    2. Prepare a cost of goods sold budget for Play-Disc for the year.

    Play-DiscCost of Goods Sold BudgetFor the Year
     
    $- Select -
     
    - Select -
     
    - Select -
    Total manufacturing cost $fill in the blank 65cdb1fa8030013_7
     
    - Select -
     
    - Select -
    Cost of goods sold $fill in the blank 65cdb1fa8030013_12
     

    Question Content Area

    3. What if the beginning inventory of finished goods was $86,600 (for 18,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.)
    The cost of goods sold would 

     

     to $fill in the blank 07e649fbf01a078_2.

Production Budget
Palmgren Company produces consumer products. The sales budget for four months of the
year is presented below.
Unit Sales
Dollar Sales
July
32,000
$985,000
August
33,500
1,064,400
September
39,000
1,197,000
October
37,000
1,142,700
Company policy requires that ending inventories for each month be 20 percent of next
month's sales. At the beginning of July, the beginning inventory of consumer products met
that policy.
Required:
Prepare a production budget for the third quarter of the year. Show the number of units
that should be produced each month as well as for the quarter in total.
Palmgren Company
Production Budget
For the Third Quarter
July August September Total
Unit sales
Total needed
Units produced
Transcribed Image Text:Production Budget Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Unit Sales Dollar Sales July 32,000 $985,000 August 33,500 1,064,400 September 39,000 1,197,000 October 37,000 1,142,700 Company policy requires that ending inventories for each month be 20 percent of next month's sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total. Palmgren Company Production Budget For the Third Quarter July August September Total Unit sales Total needed Units produced
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 3 images

Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education