y-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: rect materials $1.80 0.45 rect labor riable overhead 0.75 xed overhead 1.80 Total unit cost $4.80 the coming year, Play-Disc expects to make 400,000 plastic discs, and to sell 385,000 of them. Budgeted beginning inventory in units is 19,000 with unit cost of $4.80. (There are no beginning or ending inventories of work in process.)
y-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: rect materials $1.80 0.45 rect labor riable overhead 0.75 xed overhead 1.80 Total unit cost $4.80 the coming year, Play-Disc expects to make 400,000 plastic discs, and to sell 385,000 of them. Budgeted beginning inventory in units is 19,000 with unit cost of $4.80. (There are no beginning or ending inventories of work in process.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Cost of Goods Sold Budget
Transcribed Image Text:3. What if the beginning inventory of finished goods was $90,400 (for 19,000 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 $
Transcribed Image Text: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
1.80
Total unit cost
$4.80
For the coming year, Play-Disc expects to make 400,000 plastic discs, and to sell 385,000 of them. Budgeted beginning inventory in units is 19,000 with unit cost of $4.80. (There are no beginning or ending inventories of work in process.)
Required:
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
Budgeted direct labor
Budgeted overhead
Total budgeted manufacturing cost
2. Prepare a cost of goods sold budget for Play-Disc for the year.
Play-Disc
Cost of Goods Sold Budget
For the Year
Total manufacturing cost
Cost of goods sold
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