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Unformatted text preview: M9-17Department 16Budget at 2,000 Output Level for OctoberDirect materials ($3 2,000 20 1.10)$132,000Direct labor ($15 2,000 6)180,000Manufacturing overhead ($13 2,000 20)520,000Other costs:Containers ($9 2,000)18,000Total budget$850,000M9-21Wooly Rug CompanyProduction BudgetFor the Months of July, August, & September, 2009JulyAugustSeptemberOctoberBudgeted sales - sq. yards200,000180,000150,000160,000Plus desired ending inventory* 72,00060,00064,000Total inventory requirements272,000240,000214,000Less beginning inventory(100,000)(72,000)(60,000)Budgeted production sq. yards172,000168,000154,000*40 percent following months salesWooly Rug CompanyPurchases BudgetFor the Months of July & August, 2009JulyAugustSeptemberCurrent needs for productionC(5 lb. per sq. yard)860,000840,000770,000Plus desired ending inventory*252,000321,000Total requirements1,112,0001,161,000Less beginning inventory(400,000)(252,000)Purchases in pounds712,000909,000*30 percent of following months production requirements.*30 percent of following months production requirements....
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This note was uploaded on 05/08/2011 for the course 193431918X 711 taught by Professor Braham during the Spring '11 term at Missouri (Mizzou).
- Spring '11