250_Notes_8A_Textbook_Exhibits

250_Notes_8A_Textbook_Exhibits - Exhibit 8.5-Sales Budget:...

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Exhibit 8.5--Sales Budget: Quarter Ending June 30, 2010 February March April May Sales in units 15,000 20,000 25,000 Selling price per unit $30.00 $30.00 $30.00 Gross sales revenue $400,000 $450,000 $600,000 $750,000 Exhibit 8.6--Production Budget: Quarter Ending June 30, 2010 April May Budgeted sales (units) 20,000 25,000 Add: Desired ending inventory of finished units 7,500 10,500 Total units needed 27,500 35,500 Less: Beginning inventory of finished units 5,000 7,500 Budgeted production (units) 22,500 28,000 Exhibit 8.7--Direct materials usage budget: Quarter Ending June 30, 2010 April May 1. Budgeted production 22,500 28,000 2. Pounds of aluminum alloy per unit of product 3 3 3. Total pounds of aluminum alloy needed for production 67,500 84,000 4. Pounds of aluminum alloy from beginning inventory 7,000 8,400 5. Cost per pound $2.40 $2.45 6. Total cost of aluminum alloy in beginning inventory $16,800 $20,580 7. Total cost of aluminum alloy purchases (Exhibit 8.8) $168,805 $216,375 8. Total cost of aluminum alloy available $185,605 $236,955 9. Desired ending inventory of aluminum alloy (in units) 8,400 10,950 10. Cost per unit (assumed) $2.45 $2.50 11. Cost of aluminum alloy in ending inventory $20,580 $27,375 12. Cost of aluminum alloy used in production $165,025 $209,580 Exhibit 8.8--Direct materials purchases budget: Quarter Ending June 30, 2010 April May 1. Total direct materials needed for production (part A, Exhibit 8.7), in pounds 67,500 84,000 2. Add: Desired ending inventory of direct materials 8,400 10,950 3. Total direct materials needed (in pounds) 75,900 94,950 4. Less: Beginning inventory of direct materials 7,000 8,400 5. Required purchases of direct materials (in pounds) 68,900 86,550 6. Purchase price per pound $2.45 $2.50 7. Total cost of direct material purchases $168,805 $216,375 Exhibit 8.9--Direct labor budget: Quarter Ending June 30, 2010 April May Semi-skilled Labor 1. Budgeted production (Exhibit 8.6) 22,500 28,000 2. Semi-skilled direct labor hours per unit (given) 0.5 0.5 3. Total semi-skilled direct-labor hours needed 11,250 14,000 4. Hourly wage rate, semi-skilled labor (given) $8.00 $8.00 A. Production requirements: B. Cost of direct materials:
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5. Total wages for semi-skilled direct labor $90,000 $112,000 Skilled Labor 6. Budgeted production (Exhibit 8.6) 22,500 28,000 7. Skilled direct labor hours per unit (given) 0.2 0.2 8. Total skilled direct labor hours needed 4,500 5,600 9. Hourly wage rate, skilled labor (given) $12.00 $12.00 10. Total wages for skilled labor $54,000 $67,200 11. Total cost for direct manufacturing labor (5+10) $144,000 $179,200 12. Total direct labor hours (3+8) 15,750 19,600 Exhibit 8.10--Factory Overhead Budget: Quarter Ending June 30, 2010 Rate per Direct Labor Hour (DLH) April May Total direct labor hours (Exhibit 8.9) 15,750 19,600 Variable factory overhead: Supplies $0.12 $1,890 $2,352 Indirect labor $1.00 $15,750 $19,600 Fringe benefits $3.00 $47,250 $58,800 Power $0.20 $3,150 $3,920 Maintenance
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This note was uploaded on 04/18/2008 for the course ACCTG 250 taught by Professor Rabe during the Spring '08 term at Luther.

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250_Notes_8A_Textbook_Exhibits - Exhibit 8.5-Sales Budget:...

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