Assignment #1-Solution

Assignment #1-Solution - ACCT3334 - Fall 2010 Assignment #1...

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ACCT3334 - Fall 2010 Assignment #1 Suggested Solution Note: Comments and a suggested approach to Part II of this assignment will be provided after I’ve read the student responses 6-36 (60 min.) Comprehensive problem with ABC costing.  1. Revenue Budget For the Month of April Units Selling Price Total Revenues Cat-allac 500 $160 $ 80,000 Dog-eriffic 300 250 75,000 Total $155,000 2. Production Budget For the Month of April Product Cat-allac Do g- eri ffic Budgeted unit sales 500 3 0 0 Add target ending finished goods inventory 35 1 5
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Total required units 535 3 1 5 Deduct beginning finished goods inventory 15 3 0 Units of finished goods to be produced 520 2 8 5 3a. Direct Material Usage Budget in Quantity and Dollars For the Month of April Material Plastic Metal T o t a l Physical Units Budget Direct materials required for Cat-allac (520 units × 4 kgs. and 0.5 kg.) 2,080 kgs. 260 kgs. Dog-errific (285 units × 6 kgs. and 1 kg.) 1,710 kgs. 285 kgs. Total quantity of direct material to be used 3,790 kgs. 545 kgs. Cost Budget Available from beginning direct materials inventory (under a FIFO cost-flow assumption) Plastic: 250 kgs. × $3.80 per kg. $ 950
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Metal: 60 kgs. × $3 per kg. $ 180 To be purchased this period . Plastic: (3,790 – 250) kgs. $4 per kg.
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Assignment #1-Solution - ACCT3334 - Fall 2010 Assignment #1...

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