chapter20probsetc - PROBLEM SET C PROBLEM 20-1C The Newark...

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PROBLEM SET C PROBLEM 20-1C The Newark Company manufactures exotic wood cutting boards for use in the home kitchen. Newark is preparing its master budget for the third calendar quarter of 2006. The company expects to sell 5,000 boards in July, 5,500 boards in August, 6,200 boards in September, and 7,000 boards in October. The retail sales price for each board is $20.00. The company’s inventory policy requires that the number of cutting baords that must be on hand at the end of each month must be equal to 40% of next month’s sales needs. The number of actual cutting boards on hand on July 1, 2006 is 3,000 boards. Required: 1 . Prepare separate production budgets for the Newark Company for July, August, and September, 2006, as well as a production budget summarizing the entire calendar quarter. PROBLEM 20-2C The Mason Company is preparing its master budget for the third calendar quarter of 2006. The company manufactures exotic cutting boards for use in the home kitchen. The company has estimated that it needs to produce 6,700 cutting boards in July of 2006, 7,300 boards in August, 8,200 boards in September, and 9,000 boards in October. Each cutting board requires 3 board feet of lumber at a cost of $1.20 per board foot. Each board also requires 30-minutes of direct labor at an average direct labor cost of $14.00 per hour. Factory overhead is applied at a rate of 130% of direct labor cost. The amount of depreciation expense budgeted per month tied up in factory overhead is $3,000 per month. 1 . Prepare the direct materials budget, the direct labor budget, and the applied factory overhead budget for each month in the third calendar quarter. Each budget should also have a column for the calendar total as well as the three monthly totals.
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PROBLEM 20-3C Georgetown Corporation is preparing its master budget for the third quarter of 2006. The company’s actual sales revenue for April, May, and June 2006 was $600,000, $750,000, and $820,000, respectively. The company’s budgeted sales revenue for July, August, and September
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chapter20probsetc - PROBLEM SET C PROBLEM 20-1C The Newark...

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