Acct306 Homework Ch06

Acct306 Homework Ch06 - 6-1 CHAPTER 6 MASTER BUDGET AND...

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Unformatted text preview: 6-1 CHAPTER 6 MASTER BUDGET AND RESPONSIBILITY ACCOUNTING 6-28Budget schedules for a manufacturer. 1a. Revenues Budget Knights Blankets Raiders Blankets Total Units sold 120 180 Selling price $150 $175 Budgeted revenues $18,000 $31,500 $49,500 b. Production Budget in Units Knights Blankets Raiders Blankets Budgeted unit sales 120 180 Add budgeted ending fin. goods inventory 20 25 Total requirements 140 205 Deduct beginning fin. goods inventory 10 15 Budgeted production 130 190 c. Direct Materials Usage Budget (units) Red wool Black wool Knights logo patches Raiders logo patches Total Knights blankets: 1. Budgeted input per f.g. unit 3 1 2. Budgeted production 130 130 3. Budgeted usage (1 2) 390 130 Raiders blankets: 4. Budgeted input per f.g. unit 3.3 1 5. Budgeted production 190 190 6. Budgeted usage (4 5) 627 190 7. Total direct materials usage (3 + 6) 390627 130 190 Direct Materials Cost Budget 8. Beginning inventory 3010 40 55 9. Unit price (FIFO) $8$10 $6 $5 10. Cost of DM used from beginning inventory (8 9) $240$100 $240 $275 $85511. Materials to be used from purchases (7 8) 360617 90 135 12. Cost of DM in March $9$9 $6 $7 13. Cost of DM purchased and used in March (11 12) $3,240$5,553 $540 $945 $10,27814. Direct materials to be used (10 + 13) $3,480$5,653 $780 $1,220 $11,1336-2 Direct Materials Purchases Budget Red wool Black wool Knights logos Raiders logos Total Budgeted usage (from line 7) 390 627 130 190 Add target ending inventory 20 20 20 20 Total requirements 410 647 150 210 Deduct beginning inventory 30 10 40 55 Total DM purchases 380 637 110 155 Purchase price (March) $9 $9 $6 $7 ______ Total purchases $3,420 $5,733 $660 $1,085 $10,898 d. Direct Manufacturing Labor Budget Budgeted Direct Manuf. Labor- Units Hours per Total Hourly Produced Output Unit Hours Rate Total Knights blankets 130 1.5 195 $26 $5,070 Raiders blankets 190 2.0 380 $26 $9,880 575 $14,950 e. Manufacturing Overhead Budget Variable manufacturing overhead costs (575 $15) $8,625 Fixed manufacturing overhead costs 9,200 Total manufacturing overhead costs $17,825 Total manuf. overhead cost per hour = $17,825 / 575 = $31 per direct manufacturing labor-hour Fixed manuf. overhead cost per hour = $ 9,200 / 575 = $16 per direct manufacturing labor-hour f. Computation of unit costs of ending inventory of finished goods Knights Blankets Raiders Blankets Direct materials Red wool ($9 3, 0) $ 27.0 $ 0.0 Black wool ($9 x 0, 3.3) 0.0 29.7 Knights logos ($6 x 1, 0) 6.0 0.0 Raiders logos ($7 x 0, 1) 0.0 7.0 Direct manufacturing labor ($26 1.5, 2) 39.0 52.0 Manufacturing overhead Variable ($15 1.5, 2) 22.5 30.0 Fixed ($16 1.5, 2) 24.0 32.0 Total manufacturing cost $118.5 $150.7 6-3 Ending Inventories Budget Cost per Unit Units Total Direct Materials Red wool $9.0 20 $ 180.0 Black wool 9.0 20 180.0 Knight logo patches 6.0 20 120.0 Raider logo patches 7.0 20 140.0 620.0 Finished Goods Knight blankets 118.5 118....
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Acct306 Homework Ch06 - 6-1 CHAPTER 6 MASTER BUDGET AND...

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