Waterway Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022: Estimated unit sales Sales price per unit Direct labour hours per unit Direct labour cost per hour les Ending Inventory January 10,000 $47.00 2.00 $8.00 Begining inventory << February March April 12,000 9,000 $44.40 $44.40 2:00 1.50 $8.00 $8.00 Jan Waterway has a labour contract that calls for a wage increase to $9.00 per hour on Aprill 1. It has installed new labour-saving machinery, which will be fully operational by March 1. Waterway expects to begin the year with 16,000 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 50% of the next month's sales. Jan (a) Prepare a production budget and a direct labour budget for Waterway by month and for the first quarter of the year. The direct labour budget should include direct labour hours and show the detail for each direct labour cost category (Round DLH per unit and labo rate per hour to 2 decimal places, eg 12.25 and all other answers to 0 decimal places, eg 125) 10,000 $44.40 1.50 $9.00 10000 16500 WATERWAY COMPANY Production Budget For the quarter ending March 31, 2022 Feb 26500 May 10,000 $44.40 12000 WATERWAY COMPANY Direct Labour Budget For the quarter ending March 31, 2022 Feb 14000 28000 1.50 $9.00 Mar Mar 9000 10 15 15000 24000 Total
Waterway Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022: Estimated unit sales Sales price per unit Direct labour hours per unit Direct labour cost per hour les Ending Inventory January 10,000 $47.00 2.00 $8.00 Begining inventory << February March April 12,000 9,000 $44.40 $44.40 2:00 1.50 $8.00 $8.00 Jan Waterway has a labour contract that calls for a wage increase to $9.00 per hour on Aprill 1. It has installed new labour-saving machinery, which will be fully operational by March 1. Waterway expects to begin the year with 16,000 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 50% of the next month's sales. Jan (a) Prepare a production budget and a direct labour budget for Waterway by month and for the first quarter of the year. The direct labour budget should include direct labour hours and show the detail for each direct labour cost category (Round DLH per unit and labo rate per hour to 2 decimal places, eg 12.25 and all other answers to 0 decimal places, eg 125) 10,000 $44.40 1.50 $9.00 10000 16500 WATERWAY COMPANY Production Budget For the quarter ending March 31, 2022 Feb 26500 May 10,000 $44.40 12000 WATERWAY COMPANY Direct Labour Budget For the quarter ending March 31, 2022 Feb 14000 28000 1.50 $9.00 Mar Mar 9000 10 15 15000 24000 Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution in image format thanku
Transcribed Image Text:Waterway Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has
accumulated the following information for 2022:
Estimated unit sales
Sales price per unit
Direct labour hours per unit
Direct labour cost per hour
les
Ending Inventory
January
10,000
$47.00
Begining inventory
2.00
$8.00
<< < <
Jan
February March
12,000
9,000
$44.40
$44.40
2.00
1.50
$8.00 $8.00
Jan
Waterway has a labour contract that calls for a wage increase to $9.00 per hour on April 1. It has installed new labour-saving
machinery, which will be fully operational by March 1.
Waterway expects to begin the year with 16,000 frames on hand and has a policy of carrying an end-of-month inventory of 100% of
the following month's sales, plus 50% of the next month's sales.
(a) Prepare a production budget and a direct labour budget for Waterway by month and for the first quarter of the year. The direct
labour budget should include direct labour hours and show the detail for each direct labour cost category. (Round DLH per unit and labor
rate per hour to 2 decimal places, eg. 12.25 and all other answers to O decimal places, eg. 125.)
April
10,000
$44,40
1.50
10000
$9.00
16500
26500
WATERWAY COMPANY
Production Budget
For the quarter ending March 31, 2022
Feb
May
10,000
$44.40
WATERWAY COMPANY
Direct Labour Budget
For the quarter ending March 31, 2022
Feb
12000
1.50
14000
$9.00
28000
Mar
Mar
9000
15000
24000
Total
To
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