accounting case - =6,385,440 Less depreciation 1,004,000...

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Revenue Budget table Budgeted unit sales 50,000 Selling price per unit $500 Total sales $25,000,000 Production budget table Budgeted unit sales 50,000 Add desired ending finished goods inventory 1200 units Total needed 51,200 Less beginning finished goods inventory 1000 units Required production 50,200 Direct materials budget table Required production (units) 50,200 Materials needed per unit Times (75+42+20)= 137 $ /unit Production needs =6877400 $ Add desired ending inventory of materials +(20,000 +12000+7000)=39000$ Total needed =6916400 $ Less beginning inventory of raw materials 15,000+10,000+5,000=30,000$ Raw materials to be purchased =6886400 $
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Direct labor budget Required production 50,200 Direct labor hour per set 2+0.2=2.2 Total direct labor hours needed 110,440 Direct labor cost per hour X(20+10) Total direct labor cost 3313200 Manufacturing Overhead budget Budgeted direct labor hours 110,440 Variable manufacturing overhead 1,255,000 Fixed manufacturing overhead +5,020,000 Total manufacturing overhead
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Unformatted text preview: =6,385,440 Less depreciation 1,004,000 Cash disbursement for MOH 5,381,440 $ Ending inventory budget Production cost per unit Direct material 137$ Direct labor 42 $ Manufacturing overhead 6,385,440/50,200= 127.2 Unit product cost 306.2$ Budgeted finished goods inventory: Ending finished goods inventory in sets 1,200 unit Unit product cost 306.2 Ending finished goods inventory 367,440 $ COGS table Table sets sold x product cost = 50,000 x 306.2=15,310,000 Support department budget Total support department costs: Administration 4,819,200 Marketing 2,891,520 Distribution 1,445,760 Customer service 481,920 Total 9,638,400 Less depreciation 1,004,000 Cash disbursement for support department costs 8,634,400 Income Statement Sales 25,000,000 Less COGS 15,310,000 = Gross margin 9,690,000 Less Support expenses 8,634,400 Net operating income 1,055,600 Less Tax expense( 35%) 0.35x1,055,600=369,460 Net Income 686,140 $...
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