Solutions to Exam 3 Review Problems

Solutions to Exam 3 Review Problems - April (A) Production...

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April May June July August (A) Production Budget Budgeted sales (units) 1,200 1,225 1,300 1,350 1,400 Plus desired ending inventory 123 130 135 140 Total needs (units) 1,323 1,355 1,435 1,490 Less beginning inventory (120) (123) (130) (135) Required production (units) 1,203 1,232 1,305 1,355 (B) Direct Materials Budget Required production (units) 1,203 1,232 1,305 1,355 Material needed per unit (yards) 4 4 4 4 Material needed for production 4,812 4,928 5,220 5,420 Plus desired ending inventory (yards) 986 1,044 1,084 Total material needed 5,798 5,972 6,304 Less beginning inventory (yards) (1,000) (986) (1,044) Total Material to be Purchased (yards) 4,798 4,986 5,260 Cost of material per pound $3 $3 $3 Total cost of materials to be purchased $14,394 $14,958 $15,780 (C) Direct Labor Budget Required production (units) 1,203 1,232 1,305 Direct labor-hours per unit 3 3 3 Total direct labor hours needed 3,609 3,696 3,915 Direct labor cost per hour $9 $9 $9 Total direct labor cost $32,481 $33,264 $35,235
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April May June July August (D) and (E) Manufactuing Overhead Budget Variable MOH Direct labor-hours 3,609 3,696 3,915 Variable overhead per direct labor hour $2 $2 $2 $7,218 $7,392 $7,830 Fixed Manufacturing Overhead Factory rent $1,100 $1,100 $1,100 Indirect labor 2,000 2,000 2,000 Depreciation (factory) 800 800 800 Factory insurance 400 400 400 Total Fixed Manufacturing Overhead $4,300 $4,300 $4,300 Total Manufacturing Overhead Cost $11,518 $11,692 $12,130 Less Depreciation (800) (800) (800) Cash Disbursements for Manufacturing OH $10,718
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This note was uploaded on 07/02/2011 for the course ACCT 226 taught by Professor Smith during the Summer '10 term at South Carolina.

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Solutions to Exam 3 Review Problems - April (A) Production...

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