8-41 - Chelsea Carpenter Accounting 2362 Optima Company...

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Chelsea Carpenter Accounting 2362 Optima Company Sales Budget For the Year Ended December 31, 2007 Quarter 1 Quarter 2 Quarter 3 Units 65,000 70,000 75,000 Price $400 $400 $400 Total Sales $26,000,000 $28,000,000 $30,000,000 Production Budget Quarter 1 Quarter 2 Quarter 3 Unit Sales 65,000 70,000 75,000 Desired Ending Inventory 13,000 15,000 20,000 Total Needs 78,000 85,000 95,000 Less: Beginning Inventory - 13,000 15,000 Production 78,000 72,000 80,000 Direct Materials Purchases Budget Quarter 1 Quarter 2 Quarter 3 Production 78,000 72,000 80,000 Materials per unit 3 3 3 Production Needs 234,000 216,000 240,000 Desired Ending Inventory 63,000 67,500 81,000 Total Needs 297,000 283,500 321,000 Less: Beginning Inventory 65700 63,000 67,500 Purchases 231,300 220,500 253,500 Cost per unit $80 $80 $80 Purchase Cost $18,504,000 $17,640,000 $20,280,000 Direct Labor Budget Quarter 1 Quarter 2 Quarter 3 Units to be Produced 78,000 72,000 80,000 Direct Labor Time per Unit (hours) 5 5 5 Total Hours Needed 390,000 360,000 400,000 Avgerage Wage per hour $10 $10 $10 Total Direct Labor cost $3,900,000 $3,600,000 $4,000,000 Overhead Budget Quarter 1 Quarter 2 Quarter 3 Budgeted Direct Labor Hours 390,000 360,000 400,000 Variable Overhead Rate $6 $6 $6
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8-41 - Chelsea Carpenter Accounting 2362 Optima Company...

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